COE Prices Slipped a Tiny Bit
Some sanity and dealers would expect a rush to the showrooms this weekend as potential buyers might see this as a freak window. If hordes of buyers storm the Leng Kee and Ubi showrooms and place an order, expect COE prices to go up again and the circus is continued. Perhaps we can tell if COE prices is stabilising in 2-3 months from now.
COE prices down for the first time in nearly a year
21 April 2010 1626 hrs
SINGAPORE: COE premiums fell by about S$4,000 to S$5,000 for most categories of vehicles in the latest bidding exercise, which ended on Wednesday.
The decline came after the last two rounds saw prices rise steeply as the market reacted to a cut in the COE supply.
After two rounds of sky-high bidding where premiums jumped by over S$10,000, the market appears to be cooling down.
In the latest tender, the premium for small cars closed at S$30,000, down by S$4,001 from the previous round. For big cars, the premium fell S$5,500 to S$40,001.
In the open category, the COE closed at S$43,003, down by S$5,997. And for goods vehicles and buses, the COE dropped S$955 to S$35,556.
The only increase was for motorcycle COE, which rose S$32 to S$1,253.
Chin Kee Min, senior manager, KIA, said: “Actually, we did not expect the figures to go very high because we expected the market to correct itself because we thought that the last two bids were a little of an overreaction.
“In terms of sales, there was a huge drop and that definitely affected the bids, most customers actually stayed away. Customers are expecting a softening of the COE as well.”
This is the biggest drop in COE for most categories in about a year. In the last bidding exercise, the COE premium went up to almost S$50,000 and right now the market seems to be cooling down a little. But dealers said they still expect the premium to hover around S$30,000 to S$40,000.”
Even as prices dip this round, dealers said they do not expect customers to rush back to showrooms, that is, until consumers get used to a higher level of COE.
Kelvin Wee, prospective customer, said: “Unless it drops back to pre-hike level, whatever it is going to drop now, I think people have to adapt to the new level more than anything else and not so much that it is S$5,000 cheaper now, we will come buy a car.”
Motor traders expect prices to continue to fluctuate by S$2,000 over the next few rounds of bidding. – CNA/vm