COE Prices Soar in First August Bidding Exercise
The first Certificate of Entitlement (COE) bidding exercise for August 2024 saw a significant increase in premiums across all categories, with Cat B recording the largest jump. After a three-week break, the COE market resumed with a total of 3,853 bids received for 2,689 COEs available.
Cat A Sees Moderate Increase
The premium for Cat A, which includes cars up to 1600cc and 130bhp, as well as electric vehicles (EVs) with up to 110kW, rose by $2,390 to close at $94,289. This category received 1,570 bids for 1,013 COEs. While the increase is notable, industry experts had anticipated a more modest rise.
Cat B Premium Skyrockets
Cat B, which comprises cars above 1600cc or 130bhp, and EVs with more than 110kW, saw its premium surge by $6,101 to close at $106,101. This category received 1,150 bids for 663 COEs. The substantial increase has been attributed to aggressive bidding from new players in the market.
Cat C, D, and E Also Record Increases
The premium for Cat C, which includes goods vehicles and buses, rose by $499 to close at $71,100. Cat D, which covers motorcycles, saw its premium increase by $512 to close at $9,601. Cat E, which encompasses all vehicles except motorcycles, recorded a premium rise of $4,898 to close at $105,239.
Industry Experts Weigh In
Nicholas Wong, CEO of Kah Motor, attributed the increases to competitors’ bookings and a flat COE supply, which he believes is “not good news for the market.” Jason Lim, Managing Director of Eurokars Auto, noted that the jump in premiums was “quite big” and may be due to aggressive bidding from new players. Ng Choon Wee, Commercial Director of Komoco Motors, stated that the results were within expectations but on the high side, with Cat E’s lower premium potentially signaling weaker sales in the next two weeks.
Summary of COE Prices
| Category | Current COE | Previous COE | Difference | PQP |
|---|---|---|---|---|
| A | $94,289 | $91,899 | + $2,390 | $91,401 (Jul 2024) / $91,383 (Aug 2024) |
| B | $106,101 | $100,000 | + $6,101 | $102,828 (Jul 2024) / $102,423 (Aug 2024) |
| C | $71,100 | $70,601 | + $499 | $69,749 (Jul 2024) / $70,516 (Aug 2024) |
| D | $9,601 | $9,089 | + $512 | $9,466 (Jul 2024) / $9,133 (Aug 2024) |
| E | $105,239 | $100,341 | + $4,898 | Not applicable |
The next COE bidding exercise is expected to take place in two weeks, with industry experts closely monitoring the market for any signs of changes in demand or supply.