COE prices surge across the board after first bidding exercise in nearly 4 months

SINGAPORE — Certificate of Entitlement (COE) prices rose significantly across all categories at the end of the first bidding exercise in nearly four months on Wednesday (July 8) afternoon.

The last fortnightly COE bidding exercise was held on March 18, before being suspended in April, May and June due to the Covid-19 pandemic.

Bidding in the latest exercise opened on Monday and closed at 4pm on Wednesday.

Prices for motorcycles saw the biggest jump, with premiums rising by more than 70 per cent to S$7,702, compared to S$4,489 in the previous bidding exercise.

Meanwhile, premiums for large cars (above 1,600cc or 97kW) went up by more than 19 per cent, from S$30,012 in the previous bidding exercise to S$35,889.

Goods vehicles and buses saw COE prices increase by more than 11 per cent to S$24,502.

Premiums for small cars (up to 1,600cc & 97kW) went up by 7.4 per cent from the last exercise to S$33,520.

And finally, in the open category, which can be used for any types of vehicles, premiums went up by more than 7 per cent to S$34,989.

The authorities are analysing the bids, Transport Minister Khaw Boon Wan said, noting that the motorcycle category experienced a "significant spike" despite a 50 per cent increase in quota.

"If it was due to pent-up demand for motorbikes, I expect it to peter out," he said in a Facebook post after the results were released. "I note that it’s below the historical high of S$8,451 in February 2018."

Mr Khaw said that the authorities had decided on distributing the accumulated COE quota over 12 months, with front-loading, after taking into account that there would be some pent-up demand from three months of suspended COE bidding.

"COE bidding is market-driven and it is hard to predict exactly how much demand there will be, especially under such unusual circumstances," he said.

"We hoped that frontloading the COE reinjection would ease the pent-up demand."

Nevertheless, Mr Khaw said he was relieved that the COE market did not crash, "as that would cause a lot of misery" to second-hand dealers and existing car owners who may need to sell their cars.

NUMBERS AT A GLANCE

Cat A (Cars up to 1,600cc & 97kW): S$33,520 (up from S$31,210)

Cat B (Cars above 1600cc or 97kW): S$35,889 (up from S$30,012)

Cat C (Goods vehicles and buses): S$24,502 (up from S$22,002)

Cat D (Motorcycles): S$7,702 (up from S$4,489)

Cat E (Open category): S$34,989 (up from S$32,500)