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CERTIFICATES of entitlement for cars chalked up double-digit gains yesterday to end at some of the highest levels in a year.
The COE price for cars with engines up to 1,600cc, such as the Nissan Latio and Mitsubishi Lancer, rose by 11.6 per cent to hit $14,351.
The corresponding price for cars with engines above 1,600cc, such as the Toyota Camry and Mazda6, rose 16.1 per cent to $18,000.
Open COEs, which can be used for any vehicle type but end up mostly with car buyers, shot up by 23.6 per cent to close at $18,670.
Managing director of Toyota distributor Borneo Motors Mark Choong said premiums were 'much higher than what I thought they'd be'.
He attributed the surge to the 'anticipation of a reduction in COE supply'. The COE quota year starting next month is widely expected to yield fewer certificates as fewer cars are scrapped.
The contraction would be the fourth consecutive one since the April 2005-March 2006 quota year, when a record 144,749 COEs were released. The supply fell to 139,647 the following year and then 127,021.
Market watchers said the next quota could fall below 100,000 - a level not seen since 2003.
Read the full story in Thursday's edition of The Straits Times.
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