As COE premiums correct from recent high, more supply could be on the way

[SINGAPORE] Industry observers said that the dip in passenger car Certificate of Entitlement (COE) premiums is an expected correction, after the previous round saw new highs for multiple categories.

Anthony Teo, the managing director of automotive group Motorway, said: “After July’s first round of bidding, the premiums have backed away – so this is a small correction. But we are still near those highs as demand for cars is still strong.”

But while a quieter market led to the dip and more COE supply could be on the way, players said that premiums are unlikely to see major drops in future.