The second Certificate of Entitlement (COE) tender on 19 May 2021 saw a decrease across all categories, with Category A dipping by an exceptional 12.92%.
COE Bidding Results On 19 May 2021 (Second Tender)
- Category A closed at $41,801, a $6,201 decrease from the previous round with 1209 bids received.
- Category B closed at $58,089, a $1,912 decrease from the previous round with 1089 bids received.
- Category C closed at $41,701, a $1,300 decrease from the previous round with 315 bids received.
- Category E closed at $62,000, a $1,002 decrease from the previous round with 400 bids received.
During this second round of COE bids in May, we’ve seen the most significant decrease in prices for Category A since the start of 2021, dropping by a sheer $6,201. Meanwhile, Category B prices have dropped rather steeply as well, falling by $1,912. Unlike the massive drop in CAT A prices, this isn’t the most significant decline of CAT B prices in 2021, being the third highest COE tender in 2021.
Prices for Category C are stabilising though, appearing to be on a downward trend toward the sub-$40,000 range. Category E prices have dropped marginally, closing at $62,000. Though it may be some time before CAT E prices could revert back to the bid prices before April 2021.
What The Market Watchers Say
From this tender’s results, we can see a drop in demand from the high prices in the previous two tenders. Though COE premiums have seen a decline across the board, prices remain rather high as compared to the previous months in 2021. The current prices may also be a result of lower vehicle deregistrations.
The redistribution of unused quotas from the circuit breaker suspension will continue on until July, which should allow for a further gradual drop in prices in the upcoming tenders. Given the current decreasing trend of CAT C prices, business owners may still get their company vehicles this tender as prices are relatively reasonable. Category A prices might peak a little in the following tender due to the rising demand for smaller passenger vehicles for the rest of the month. Taking into account the increase in quotas based on 2011’s tenders, we anticipate a potential decrease for Category B, C, and E.
“Back in April, the high prices of COE shocked me, particularly Category B, where the price increased to $61,190 during the second tender in April. The high COE prices were likely due to the government announcing the drop of COE quotas by 17% across all categories. As such, many dealers expected prices to climb substantially,” said Javier Tan, Sales Director of United Motoring Pte Ltd.
He added, “Today, the second tender caught me by surprise as it decreased across all categories. Before the results were announced, many dealers and I were expecting prices to climb up to the $70,000 mark due to the lowered quotas available. With the reinsertion of Phase 2 restrictions, we may see a further decrease in COE prices. Despite the lowered prices, the market for new cars has been vastly affected. It may also be the reason for Category A’s prices decreasing, despite the quantity of overbids. As we go through these unprecedented times, it only shows how unpredictable the COE prices are.”
Mr. Shin Koh, a Sales executive from Auto Midas, expressed concerns for the declining market demand, saying “Generally, the economy isn’t doing well. We can look forward to COE prices gradually decreasing in the next few months. However, seeing a drastic drop in COE prices is highly unlikely.”
With the decreasing trend across all categories, the market should see a slow return to stability. Category A vehicle sales could possibly increase in both new and used cars markets. However, Category B, C, and E may see a slower return to normality as prices remain on the higher side of the spectrum.
If you are in the market for a used car, you can head on over to our marketplace, where we have a wide selection of vehicles from over 300 dealers. You may also want to check out our new car listings for smaller capacity engines, given CAT A’s significant drop this second tender.