- POSTED: 19 Feb 2014 17:14
Certificate of Entitlement premiums rose across all categories of vehicles in the latest bidding exercise.
SINGAPORE: Certificate of Entitlement (COE) premiums rose across all categories of vehicles in the latest bidding exercise.
The biggest jump was seen in Category A, for cars up to 1,600cc and 130 brake horsepower.
It is the second bidding exercise since changes were made to the classification of vehicles.
COE premiums for Category A surged by S$5,637, or nearly eight per cent, to end at S$77,201 despite several luxury models removed from the category and reclassified in Category B.
Meanwhile, COE for larger, more powerful cars in Category B climbed S$3,304 or about four per cent to S$78,604.
Premiums for commercial vehicles rose S$1,888 to S$52,890, while that of motorcycles ended higher at S$3,501, up S$450.
The COE price for the Open category rose S$1,997 to S$79,000.
Mike Wee, managing partner at Mayfair Motoring, said demand for cars under Category A is still high because luxury car makers have found a way around the re-categorisation that kicked in at the start of the month.
"The luxury brands are bringing in models without turbo and this means the horsepower goes below 130 so all these luxury cars will still fall under Category A. I think a lot of buyers are still buying because without turbo, it's about S$15,000 cheaper so people feel that it's a good buy," explained Mr Wee.
The spike in Category A prices is especially sharp, after a slight drop during the first bidding exercise of the month.
Mr Wee said dealers had been more conservative then as it was the first bidding exercise following both the reclassification and a cut in COE quota.
"We were surprised when COE prices came down instead so we ramped up promotions in order to get buyers back. We were pleasantly surprised by the good response, especially after the Chinese New Year period," he said.