The first Certificate of Entitlement (COE) tender of March 2021 saw a decrease across all categories, except Category A, which saw a slight increase of 2.43%, in spite of the recent petrol price hike and Tesla making waves in the local automotive industry.
COE Bidding Results On 3 March 2021 (First Tender)
Category A closed at $41,996, a $995 increase from the previous round with 1,175 bids received.
Category B closed at $45,001, a $1,001 decrease from the previous round with 1,121 bids received.
Category C closed at $37,513, a $3,377 decrease from the previous round with 480 bids received.
Category E closed at $47,001, a $505 decrease from the previous round with 450 bids received.
Even though Category A prices have risen marginally, it is still considerably higher than the prices in the past year. Category C prices have dropped drastically from the previous quota premium in the first round of February bids, while the drop in Category E prices makes this the lowest quota premium since the start of 2021.
Future COE Predictions
Industry experts have speculated that COE prices in most categories are gradually declining since the average monthly quotas stabilized and the bids have fallen from a peak after circuit breaker. Whereas some noticed that consumers are leaning more towards buying second-hand cars as there is lesser cash paid upfront.
“The drop in prices may be attributed to the weakened market sentiments due to the COVID19 pandemic, as consumers gravitate towards second-hand cars. There is less cash changing hands as people are still holding on to their savings for a rainy day,” added Lionel Song, Director of SH Vehicle Traders.
Despite the release of the Tesla Model 3 in recent weeks, the prices in Category B did not see a huge increase in prices. This may be due to the current lack of EV infrastructure to support mass-market adoption, dissuading consumers from purchasing electric vehicles.
Now that COE prices have stabilised somewhat, we may see less severe fluctuations in prices. However, as we approach April, there may be a resurgence in Category C prices as the Commercial Vehicle Emissions Scheme (CVES) comes into effect.