COE premiums close lower across all categories

SINGAPORE: Certificate of Entitlement (COE) premiums closed lower across all categories in the latest bidding exercise on Wednesday (Nov 6).
This is the second consecutive exercise in which premiums have dipped for all categories. 
For Category A cars, or those 1,600cc and below with horsepower not exceeding 130bhp, premiums closed at S$99,889 (US$75,110), down from S$102,900 in the last exercise.
Premiums for larger and more powerful cars in Category B had the largest decrease, falling to S$108,001 from S$113,890.
COEs for commercial vehicles, which include goods vehicles and buses, fell to S$68,340 from S$72,939 in the previous bidding exercise.
Motorcycle premiums closed at S$9,089, down from S$9,589 in the last exercise.
Open category COEs, which can be used for any vehicle type but usually being used mainly for large cars, fell to S$109,000 from S$114,700.
A total of 3,661 bids were received, with a quota of 2,681 COEs available.
This was the first bidding exercise since the government announced in October that it would be progressively injecting up to 20,000 additional COEs across all vehicle categories from February 2025 over the next few years.
Dealers CNA spoke to had predicted a hit to car sales in the short term with customers holding off on purchases in the hopes of a fall in COE prices.
The Land Transport Authority (LTA) explained that the extra COEs were possible because of the upcoming implementation of the ERP 2.0 system, which LTA said would help manage traffic congestion better.
Another reason cited by LTA was the changing travel patterns post-pandemic. An increase in flexible work arrangements had resulted in a fall in total vehicle mileage for private vehicles over the last five years, said LTA.
The last time such a move was made was between 1997 and 2003, when an additional 10,500 COEs were introduced, following the introduction of the present ERP system vehicle mileage for private vehicles over the last five years.