Singapore
COE prices climb to new heights despite larger supply, Open Cat now S$131,000
Despite a 5.6% increase in supply, COE prices hit record highs in multiple categories this Wednesday with Open Category vehicles hitting an unprecedented S$131,000.
In a surprising turn of events at the latest tender on Wednesday, certificate of entitlement (COE) prices for multiple categories surged, setting new records despite an increase in supply.
Category B COE, which represents entitlements for larger and more powerful vehicles, reached a significant high of $129,890. This is a notable increase from its previous peak of S$126,889 just two weeks prior.
Not to be outdone, the Open category COE, which can be utilized for any vehicle but predominantly goes to the larger, powerful car segment, soared to an unprecedented S$131,000, marking an increase from its last record of S$126,201.
On the other hand, COE prices for smaller, less potent vehicles (Cat A) experienced a marginal rise, finishing at S$100,000, up from the previous figure of S$99,499.
Similarly, the commercial vehicle COE witnessed a slight upward movement, reaching $82,801 from its earlier price of S$82,100.
However, not all categories saw an uptrend. The motorcycle premium was an exception to the prevailing trend as its price closed a tad lower at S$11,402, down from its previous S$11,501.
Interestingly, the recent quota period for August to October has shown a 5.6% growth in the number of COEs when compared to the preceding three-month duration.
This unexpected surge is attributed mainly to an extraordinary adjustment that was announced in May.
The Land Transport Authority, as part of this modification, proactively advanced some COEs from projected peak supply years. Consequently, an additional 1,025 COEs, exclusively for cars, were introduced to the current three-month quota.
The record-breaking COE prices, in the face of increased supply, have intrigued market watchers and will likely stimulate further discussions on demand and pricing dynamics in the months to come.
