The Certificate of Entitlement (COE) tender on 22 July 2020, saw most prices across the board closing at lower than the previous round on July 8 with the exception of a marginal rise in the open category. This round was the second after an almost-four-month suspension due to the circuit breaker amid the COVID-19 pandemic.
(Related Story: The Fundamentals of Singapore’s COE System)
Category A closed at $32,699, which is $821 lower than the previous round with 2,485 bids received.
Category B closed at $35,001, with a decrease of $888 with 2,497 bids received.
Category C closed at $23,888, at $614 lower than the previous round, with 759 bids received.
Category E closed at $35,001, which is $12 higher than the previous iteration, with a total of 1,355 bids received.
In the previous bidding exercise, COE prices increased across all categories, much to the surprise of automotive industry analysts and experts alike. Traders speculated that the increase was due to a backlog of demand.
However, the slight decrease in this most recent tender is thought to be a correction of the previous round’s price surge, according Raymond Tang, Managing Director of Yong Lee Seng Motor.
FUTURE COE PREDICTIONS AMID POSSIBLE COVID-19 RESURGENCE
Despite this, Mr Tang expects COE prices to increase again in the next three months. He adds that this is due to a lower expected quote for the bidding period during this time, and an increasing number of people opting for cars as a safer transport option during the COVID-19 pandemic.
Mr Tang explains that agents are pressed to clear orders as soon as possible. This is caused by widespread concern amongst dealers about a second wave of COVID-19 infections, which may cause COE bidding and businesses to be suspended yet again.
With the dip in prices following 22 July’s bidding exercise, however, dealerships can expect a marked increase in demand for now.
BEATING THE COVID-19 CRUNCH WITH A PERSONAL CAR
As mentioned before, personal cars are a popular and safer transportation alternative to public transport due to the COVID-19 pandemic.
If you are looking to cash in on the lowered COE prices and snag a car of your own, be sure to check out UCARS’ online car marketplace. We have partnered with over 270 trusted local dealers to host a wide variety of both new and used cars on our platform, meaning that we are sure to have a car that suits your specific needs.