Drop in COE prices for cars
CERTIFICATE of Entitlement (COE) prices fell across the board at the close of the month's first tender exercise yesterday.
The results were in contrast to the previous round of bidding last month, which saw COE premiums for cars climbing to highs for the year.
Premiums for cars up to 1,600cc and 130bhp dipped by 5.3 per cent, from the year's high of $55,200 to $52,301.
Meanwhile, COE prices for cars above 1,600cc or 130bhp dropped by a marginal 1.6 per cent - from $57,010 to $56,089.
Premiums in the open category - which can be used for any vehicle type but ends up mainly for bigger cars - fell 2.4 per cent from $57,390 to $56,002.
Eddie Loo, managing director of CarTimes Automobile, said the jump in car COE prices last month was likely due to buyers rushing into the market - a "knee-jerk" reaction to the Government easing car-financing rules in May.
"With higher COE prices, dealers are pricing (their cars) higher so buyers are now adopting a wait-and-see approach," he noted.
Raymond Tang, first vice-president of the Singapore Vehicle Traders Association, reckons consumers are holding back in the wake of Britain exiting the European Union.
Buyers may also be waiting for the announcement later this month of the next quarter's COE supply quota, for the months of August to October, he added.
Meanwhile, COE prices in the commercial vehicle category fell marginally by $113, from $48,002 to $47,889.
Motorcycle premiums also dropped from $6,303 to $6,012, sliding 4.6 per cent.