The first Certificate of Entitlement (COE) bidding tender for December 2020 saw an increase in COE price across all categories. On 9 December 2020, Category E saw the highest increase of 9.21%, and Category A passing $40,000 for the first time in 2020.
Category A closed at $40,714, which increased by $3,024 from November 2020 with 1,620 bids received.
Category B closed at $45,012. Quota premium increased by $3,911 with 1,712 bids received.
Category C closed at $32,889, an increase of $2,555 from the previous round with 599 bids received.
Category E closed at $45,510, with the largest increase of $4,007 from the previous round with 722 bids received.
Dealers’ efforts towards year-end sales seemed to have paid off as demand for Category A and B COE has increased. However, given that quota remains stagnant in quantity, COE prices have skyrocketed across all categories.
Given the upcoming 12.12 promotions in December, it is likely that demand will remain high throughout 2020. Furthermore, with the continual trend of bids exceeding quota, COE prices are expected to remain in its current price range.
Also, seeing that vehicle deregistration has been decreasing since August, we can expect fewer quota between February and April 2021. This may cause continued upward pressure in COE prices if demand does not fall substantially in the months to come.
FUTURE COE PREDICTIONS
Stakeholders in the industry have given UCARS their opinions on the latest COE bidding prices for December 2020 and future COE biddings.
“The latest COE was shocking for the automotive industry as the current market is rather slow now. We predict that the upcoming COE will reach the highest peak very soon!” said Darick Oh, Co-Founder of Dew Motoring. “Furthermore, the used car price will be affected too so we will continue to observe and see how the next COE bidding will turn out.”
Mr Danny Cheong, Manager of Cars Selection Pte Ltd, believes that prices will increase in the upcoming COE biddings.
“Many Authorised Agents have to bid in order to fulfill the new car handing over deadline. As the quota for COE will drop further starting next month, most will predict that the price may keep climbing in the next few bids. The increased price of COE will also affect the price on used cars,” explained Mr Cheong.
With upcoming promotions for the 12.12 sales islandwide, consumer demand likely remains high throughout December 2020. Also, with decreasing vehicle deregistration in previous months, we should anticipate an even lower quota in 2021. Despite this, we should be wary that once the year-end sales diminish, so might overall demand.
Looking for a car to purchase in the upcoming 12.12 sales this weekend? UCARS offers you various new and used cars on our marketplace! Find the latest 12.12 car promotions on our Facebook and Telegram to get the best 12.12 deals today.