Revised system aims to reduce volatility in supply, with Category B and Open Category premiums falling
In Singapore’s latest Certificate of Entitlement (COE) bidding exercise on Wednesday (August 3), premiums for larger vehicles saw a decline following record highs in two previous rounds. This marked the first tender under the newly revised method for determining the quarterly COE quota, designed to reduce supply fluctuations.
COE premiums for larger cars in Category B, which includes vehicles over 1,600cc and more than 130bhp, dropped to S$107,001 from S$110,003. Similarly, premiums for Open Category COEs, often used for large cars, fell to S$113,000 from S$114,001.
In contrast, COE premiums for Category A cars, those with engine capacities of 1,600cc and below, increased slightly to S$80,000 from S$78,899 in the previous round.
Meanwhile, premiums for commercial vehicles rose to S$56,089 from S$54,889, while motorcycle COE premiums climbed to S$11,000 from S$10,910.
A total of 2,458 bids were received, with a quota of 1,863 COEs available for this exercise.
Under the new quota-counting method, the COE supply will now be determined using a rolling average of vehicle deregistrations over two quarters, rather than just one. For the current August to October quarter, this change has resulted in a 11.5% decrease in the COE quota compared to the previous quarter.
