COEs cross S$90,000 mark in 2 categories over supply fears

MAN, WHAT DOES IT TAKE TO OWN A
CAR FOR YOUR FAMILY AROUND HERE?

Driven by anxiety over a likely shrinkage in the supply of Certificates of Entitlement (COEs) in the second half of the year, COE premiums for cars rose sharply in the latest bidding exercise yesterday.

COE premiums for small cars witnessed the biggest percentage jump, as prices climbed 9.7 per cent to close at $64,201.

Category B (Cars 1,601cc and above) and Open categories - which can be used for any vehicle type but ends up mainly for cars - saw premiums crossing the $90,000 mark, to close at $91,000 and $92,010 respectively.

COE premiums for commercial vehicles rose 6.7 per cent to S$57,589, while those for motorcycles edged up 1.5 per cent to close at S$1,924.

Car dealers said the prices are at record levels since the Open Bidding system was implemented a decade ago and cited the surging premiums as a result of the anticipated slower growth in vehicle population.

"Basically, it's anxiousness and fear that's driving the market, because a lot of people are afraid that COEs will go through the roof come August as the Government is reducing the growth figures," said senior manager of Kia Operations at Cycle & Carriage Chin Kee Min.

The motor industry also took note of Transport Minister Lui Tuck Yew's comments over the weekend. He said COE premiums are soaring because the economy is doing well and not because the Government is further slowing the growth in the vehicle population to 0.5 per cent, as that kicks in only in August.

"Many traders took it as a cue that the cut will proceed, and thus decided to take a position and avoid a last-minute rush," said Mr Ron Lim, general manager of Nissan agent Tan Chong Motor. Pointing out that the next bidding exercise will take place three weeks later, instead of the usual two weeks, Mr Lim added: "No one wanted to take any chances."

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