The first Certificate of Entitlement (COE) tender on 9th June 2021 saw an increase in Category A and Category B prices, while Category C dipped an exceptional 11.3%, and Category E saw a marginal drop in price by 1.43%.
COE Bidding Results On 9 June 2021 (First Tender)
- Category A closed at $48,510, a $6,709 hike from the previous round with 1,439 bids received.
- Category B closed at $60,109, an increase of $2020 over the previous round with 1,107 bids received.
- Category C closed at $37,002, a dip of $4,699 over the previous round, with 413 bids received.
- Category E closed at $61,112, which is an $888 decrease over the previous round, with a total of 331 bids received.
In the first COE tender for June, we’ve seen a significant increase in prices for both Categories A and B. At $48,510 and $60,109 respectively, they come right behind April’s second tender when prices peaked earlier this year.
Fluctuations of Category C prices have remained relatively stagnant, but at $37,002 it sees itself on the lower side of the price range for this year. On the other hand, while Category E saw a dip in price, it remains above the $60,000 mark – a much higher price compared to 2020. See the results of all COE prices here.
WHAT INDUSTRY LEADERS ARE SAYING
“Car buyers may be motivated to make their purchase now before the upcoming surcharges to the Vehicular Emissions Scheme (VES) kick in on 1 July. There was also a three-week gap since the last bidding, which could have bumped up COE prices for Categories A and B.” said Hong Chun Mun, CEO of UCARS.
He added, “In this pandemic where people feel safer to commute in their own cars, and more disposable income due to the lack of travel, I think demand for cars will continue to be strong.”
VES is a scheme introduced to encourage car buyers in Singapore to buy a car that emits less pollutants by granting rebates or imposing surcharges based on the vehicle’s emissions. An enhanced scheme with increased rebates and higher surcharges was announced last November to further promote the adoption of vehicles that are more environmentally friendly in Singapore. To allow time for the market to adjust, the surcharges for vehicles in both Bands C1 and C2 will only be increased from 1 July 2021.
“COE prices are getting too high, but this was expected because of the announcement of a decrease in quota. There is also a low supply of PARF cars, and COE renewal is expensive,” said Scord Ho, Director of Gen Y Automobile, suggesting that car prices may remain high for now.
Ken Ng, Director of Majestic Automobile expressed concerns that “COE prices will maintain at this level for the time being,” and a director of a used car dealership (who wishes to stay anonymous) also shared similar sentiments that COE prices may continue to increase or at least remain at this range.
While COE prices are definitely an important factor in your decision making for buying a car, there are other factors to consider as well. For instance, buyers of vehicles that are more environmentally friendly can enjoy increased rebates.
If you are looking to purchase a car, you can head on over to our marketplace, where we have a wide selection of vehicles from hundreds of dealers.