COEs for cars and taxis closed at a 14-year high on Wednesday. (Yahoo! photo)
Certificates of entitlement for cars and taxis reached a 14-year high on Wednesday.
Premiums for cars up to 1,600cc and taxis crept up by 0.02 percent to hit $56,002 in the latest tender after last Friday's announcement of quota numbers for the August-January period, while premiums for cars above 1,600cc increased by 5.8 percent to $72,501.
The open category COE saw the biggest rise of 8.3 percent. It ended at a six-month high of $74,490.
COE for goods vehicles and buses ended at $34,502, about 5.9 percent higher than the last tender, while premiums for motorcycles was the only one to fall by 14.7 percent to $2,012.
Results of the latest bidding exercise. (LTA screenshot)
The rise was, in part, caused by Premier Taxis securing 20 COEs at $56,002 per piece, which was among the most expensive certificates paid for by a a taxi company, reported The Straits Times (ST).
These results also reflect the changes to the COE supply. Premiums that saw the biggest increases -- those for cars above 1,600cc and commercial vehicles -- will have the biggest quota reductions in the next six months.
Cars above 1,600cc and commercial vehicles will see their quotas drop by 141 and 68, respectively, from August.
And while cars 1,600cc and below will have more certificates available, dealers told the paper that companies will focus more on sales of these smaller models because of the shrinkage of certificates in other categories.
Industry players told the paper COEs are unlikely to soften soon and they believe premiums will continue their upward track.
Tan Chong's general manager Ron Lim said the trade's biggest worry now is whether the government will further cut the 1.5 percent annual allowable growth rate for Singapore's vehicle population.
"The 1.5 percent now accounts for 30 to 40 percent of COE supply in each category. If it is brought down to zero, all hell will break loose," he said.
The 1.5 percent cap, halved from 3 percent two years ago, expires this year. There have been calls for it to be cut further.
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