The first Certificate of Entitlement (COE) tender of April 2021 saw an increase across all categories except Category C, with the highest Category B bid at $52,309 since the start of 2021.
COE Bidding Results On 7 April 2021 (First Tender)
Category A closed at $45,600, a $1,011 increase from the previous round with 1,212 bids received.
Category B closed at $52,309. A stunning $5,308 increase from the previous round with 1524 bids received.
Category C closed at $36,134, a $3,455 decrease from the previous round with 488 bids received.
Category E closed at $52,200, a $4,394 increase from the previous with 635 bids received.
The first April tender showed three new highs since the start of the year in Category A, Category B and Category E. Category A has increased considerably since the previous 2nd tender in March. While Category B rocketed by 11.29%, the highest increase since the start of this year. Likewise, Category E sees a 9.29% increase to $52,200. Both Category B and E crossed the $50,000 mark.
Future COE Predictions
Due to the suspension of the bidding process back in mid-2020, 16,600 COE quotas have been redistributed from February to April. The remaining surplus will be up for redistribution from May to July 2021. Given that prices for categories A, B and E have hit a new high, it shows that the demand for COEs is still on the rise. The combination of high COE prices and the impending end of the redistribution of COEs would suggest that prices for COEs in the upcoming tender may potentially rise in the passenger car categories.
Businesses that need a new company vehicle would benefit this tender, as Category C dipped during the first tender of April 2021. Although we expect it to rise in the second tender.
“Both Category B & Category E COEs had a huge increase of 11.3% and 9.2% respectively compared to the previous exercise,” said Daniel Mok, Sales Manager of Go Wheelers. “The last time Category B & Category E COEs passed the $50,000 mark was back in the 2017 period. I expected the prices of COE to increase due to the quota cut but an increase of $5,308 is not what I expected. This is probably due to dealers clearing unwanted inventory from previous unsuccessful biddings and new orders collected over the 3-week interval from the previous COE bidding”
Another Dealer who chose to remain anonymous said: “COE prices have been increasing in the year 2021. Based on the first tender of April, I believe there will be a continuous increment in the following COE bidding results for the next few months. These results will also affect the car industry a little on the price adjustment. Prices of used vehicles might progressively increase due to new vehicles adjusting their prices accordingly to the latest COE adjustments.”
Despite the recent hike in COE and petrol prices, we can still look forward to new EV technologies in the automotive industry. Rebates of up to $20,000 for electric vehicles with plans to increase the current 1,800 to 25,000 charging stations by the end of 2030. Overall, we would expect to see COE prices to rise slightly but fluctuate around the current prices in the next tender.