Prices for Singapore’s Certificate of Entitlement (COE) are likely to remain high as demand continues to outstrip limited supply. Despite a dip in premiums for cars after the latest bidding exercise closed on 4 May, it is too early to tell if prices have peaked, said analysts who forecast that COE premiums for cars may rise in the next few cycles.
Raymond Tang, the market analyst at Yong Lee Seng Motor, anticipates that Category A and B premiums will hover around the SGD100,000 ($71,000) mark until the end of the year, with slight rises and dips. “This is a cycle, you cannot force the supply to be increased,” said Tang.
The supply of COEs is based on the number of deregistrations, which is usually when the COE expires 10 years after registration. As the number of cars registered 10 years ago is linked to the number of cars being…
