COE premiums rise across all categories, Cat E now at all-year high

In the second round of bidding for November, Certificate of Entitlement (COE) prices rose across all categories, save for Cat C. 

The latest news of increased COE supply for this quarter may have prompted more buyers to put in bids this bidding session.

This can be seen in the number of bids received for Cat A, B and E, which all saw increases when compared against last month.

Cat A COE - Premiums reach second highest point this year 

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output of no more than 130bhp, increased by $1,700 (4.7 per cent) and ended at $37,690 this bidding round. 

This climb takes premiums for Cat A to their second-highest they have been so far for 2020. Premiums for the category now stand at 11.9 per cent above the 12-month trailing average. 

The number of unsuccessful bids this round exceeded the available quota by 40 per cent. This figure has averaged 54 per cent for Cat A in the last 12 months. 

Cat B COE - Premiums climb $2,101 this bidding session 

Premiums for Cat B, for larger cars with more than 130bhp or engine displacements larger than 1,600cc, likewise climbed upwards this bidding session. 

With premiums climbing by $1,168 (5.4per cent) and ending at $41,101, the current premium for Cat B is likewise also at its second-highest this year, with the last peak reaching $41,510 during the first bidding round for September. 

This climb sees the premium for this bidding round settling into the 85th percentile of the 12-month trailing average, at 9.6per cent higher than the average for premiums of the last 12 months. 

The total number of unsuccessful bids this round exceeded the quota available by 55 per cent, which is higher than the 12-month average of 50 per cent. 

Cat C COE - Premiums continue their downward slip 

Premiums for Cat C, for goods vehicles and buses, decreased by $1,168 (3.7per cent) to end at $30,334. 

Cat E COE - Premiums climb to an all-time high this year 

In Cat E, the open category, premiums rose by $2,003 (5.1per cent), closing at $41,503, raising them to an all-time high for 2020. 

The premium for this bidding round now stands at 9.0per cent above the 12-month trailing average and is at the 94th percentile of the premiums of the last 12 months. 

The number of unsuccessful bids this round exceeded the available quota by 54per cent. The 12-month trailing average for this figure is 54per cent. 

*The 12-month trailing average only takes into consideration the months wherein there was active COE bidding. 

Prevailing Quota Premium 

The Prevailing Quota Premium is the amount to be paid for COE renewal and is computed from the moving average of the previous three-months of COE prices.

Those looking to renew the COE on their cars will thus have to pay the following prices for the respective months. 

This article was first published in sgCarMart.