COE prices end mostly lower after two recent spikes
Certificate of entitlement (COE) prices ended mostly lower in the latest tender yesterday as two previous spikes sent potential buyers to the sidelines.
The COE premium for cars up to 1,600cc or 130bhp finished 3.3 per cent lower from two weeks ago at $48,002.
The premium for cars above 1,600cc or 130bhp closed at $60,001, 1.9 per cent lower from two weeks ago.
Prices of the Open COE, which can be used for any vehicle type except motorcycles but which ends up mostly for bigger cars, ended 1.5 per cent higher at $63,002.
Commercial vehicle COE prices finished 2.3 per cent lower at $43,001.
The motorcycle premium closed 0.1 per cent higher at $8,011.
Unlike the other categories that have smaller COE supplies from this month to July, the motorcycle category has a bigger supply.
The downward correction in most of the other categories was expected. Usually, the market reacts to a supply shrinkage ahead of the actual contraction.
Potential buyers have also been put off by the sharp increases in the last two tenders.
Motor traders said showrooms have been largely quiet in the last two weeks. Premiums would have fallen more sharply if not for a sizeable backlog of unfulfilled orders.
Yesterday's tender drew 2,731 bids for car COEs (including Open), 22 per cent less than the previous tender two weeks ago.
The rise in Open COE prices on the other hand points to speculation that premiums will rebound within this current three-month quota period. - THE STRAITS TIMES