The first Certificate of Entitlement (COE) tender on 3rd February 2021 saw a decrease across all categories except Category C. The highest recorded decrease was for Category B by 6.83%, followed by Category E with a 4.17% decrease. Category C saw a further increase of 9.31%.
COE Bidding Results February 2021 (First Tender)
(Related Story: COE Bidding Results: January 2021 Second Tender Analysis)
Category A closed at $42,000, a $1,501 decrease from the previous round with 1,098 bids received.
Category B closed at $46,790, which is a decrease of $3,310 from the previous round with 1,107 bids received.
Category C closed at $45,001, with an increase of $4,002 from the previous round, with 510 bids received.
Category E closed at $49,778, which is a $2,122 decrease from the previous round, with a total of 435 bids received.
While the continuous increase in COE price for Category C was expected, the decrease for other categories came as a surprise to many. We believe that due to the anticipated dip in COE quota from February and therefore increase in prices, car buyers and dealers are holding back from bidding this time round. As such, as more people have a similar mindset, we see that demand for Category A, B, and E has dropped substantially.
FUTURE COE PREDICTIONS
Sentiments about the unexpected drop in most categories were expressed by a number of car dealers in Singapore.
“It was a surprise to see the COE prices drop today despite the cut in COE quota. However, despite the weak crowd seen along Leng Kee nearing Chinese New Year, we might see prices rise again in the next round of COE bidding. This is likely going to happen once car dealerships start their Chinese New Year promotions,” said Edward Chong, Director of Equino Automotive.
However, he also said that it was “no surprise” that Category C had an increase, given the new Commercial Vehicle Emissions Scheme (CVES) that will begin in April 2021. He noted that most companies still prefer diesel vehicles, and therefore are likely to jump on the bandwagon to purchase COE for Category C before the new scheme kicks in.
As expected, Category C still shows a steady increase in COE prices in anticipation of the CVES. We can therefore expect prices to continue increasing up until the bidding exercise right before April 2021. As for other categories, it is likely that Chinese New Year promotions offered by car dealers in the coming weeks will entice customers to spend on vehicles. Because of this, we expect an increase across most Categories. However, it is crucial to keep in mind that the decrease in quota from February might impact the magnitude of changes in the next round.