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Median open market value of Cat A cars remains below S$20,000 after re-categorisation
THE median open market value (OMV), based on the price actually paid or payable for the goods when sold for export to the country of importation, has gone down for cars registered in Category (Cat) A, following the re-categorisation of Cat A and B cars last February.
The Land Transport Authority (LTA) on Friday morning said that there is also a greater proportion of cars with lower OMV in Cat A, compared with before re-categorisation.
The median OMV of Cat A cars has remained consistently below S$20,000 in the one-year period since February 2014.
Comparing the six-month period before the re-categorisation with the corresponding six-month period after, the median OMV for cars registered with COEs obtained in the latter period fell 27 per cent, from S$26,147 to S$19,143.
Correspondingly, the percentage of cars with OMV at or below S$15,000 went up to 12 per cent from 8 per cent for all Cat A registrations.
LTA said that those with OMV at or below S$20,000 jumped from 26 per cent to 70 per cent, while those with OMV at or below S$25,000 leapt from 43 per cent to 80 per cent.
The re-categorisation was implemented to ensure that Cat A continues to cater mainly to mass-market car buyers, and stem the rising number of higher-end cars appearing in Cat A in recent years, said LTA.