COE prices rebound after pandemic restrictions are lifted

[SINGAPORE] Certificates of entitlement (COE) prices ended mostly higher at the latest tender on Wednesday (Aug 18) as the economy reopened after the latest pandemic restrictions, with the highly-speculated motorcycle premium reaching an all-time high of S$9,500.

The COE price for cars up to 1,600cc and 130bhp finished at S$45,689, up slightly from S$45,189 two weeks ago. The premium for cars above 1,600cc or 130bhp closed at S$61,001, up from S$56,001 previously.

The Open COE, which can be used for any vehicle type except motorcycles but which ends up almost exclusively for bigger cars, ended at S$64,901, up from S$59,599.

The motorcycle category, which has long been prone to speculative bidding by a handful of major players looking to hoard certificates, broke the last bidding's record S$8,899 to close at S$9,500.

Meanwhile, commercial vehicle COE bucked the trend by ending at S$40,010, down from S$42,589 - despite a significant shrinkage in supply.

The surge in COEs for bigger cars vis-a-vis the incremental rise in premiums for bread-and-butter cars indicates a weakness in the mainstream market, which accounts for the bulk of COEs.

Observers said buyers of bigger cars are less price-sensitive, while sellers have fatter margins to bid for COEs with.

The Straits Times understands Hyundai has, for instance, sold out its initial batch of 50 Ioniq 5 electric cars even before its official launch. Two variants are available, priced from S$138,888.

THE STRAITS TIMES

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