Fall in COE premiums for Category A and B after supply increase; Open Category rises to record high

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Fall in COE premiums for Category A and B after supply increase; Open Category rises to record high
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SINGAPORE: Certificate of Entitlement (COE) premiums for Category A and B fell on Wednesday (May 17), in the first bidding exercise under the increased quota for cars in the two catego

Premiums for Category A, which is for smaller cars, closed at S$92,000 , down 8.9 per cent from S$101,001 in the previous tender.

Open category COEs, which can be used for any vehicle type but end up being used mainly for large cars, rose to a record S$125,000, from S$124,002. This exceeds the previous high of S$124,501 from the tender that closed on Apr 19. Motorcycle premiums closed at S$10,602 - double the closing price of about S$5,000 in the last tender. Prices in this category plunged in the last round,and cutting the validity period for motorcycle temporary COEs.It was announced earlier this month that the COE quota for cars in categories A and B will go up over the next few quarters as the Land Transport Authority makes a one-time adjustment to reduce the supply volatility.

These COEs are from a pool of guaranteed deregistrations of five-year COEs which are set to expire when supply is higher. LTA will bring them forward to be distributed over the next few quarters.

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