- Published: Tuesday, 20 May 2014 21:47
SINGAPORE - After falling dramatically a fortnight ago, prices for COEs (or Certificates Of Entitlement) look set to rebound this week.
That's the opinion of every motor trader that CarBuyer has spoken to, in the aftermath of a busy couple of weekends for the industry.
Because the last COE auction saw Category A, B and E certificates reach their lowest prices of the year, showroom traffic has apparently been healthy.
"I think there are those who were waiting for it, and they finally came out to look (for a new car)," says one senior marketing manager we spoke to.
Car dealers are coy about how many of the people who have been flocking to showrooms actually bought a car (instead of merely browsing), but those we spoke to have been generally positive.
"Will we see a spike (in COE prices)? I think so," says the marketing manager. But she was careful to add that even if COEs go up in price, they are unlikely to do so by much.
That's because car dealers lowered their prices in response to the cheaper COEs from the auction earlier this month, and so they have slimmer margins. This gives them less money to devote to COE bids.
By 4pm on Wednesday we'll find out just how much COEs have rebounded (if indeed they do), and if so, it will be one more example of how the pricing system for those prized certificates often defy the law of gravity. When it comes to COEs, sometimes it seems that what goes down must come back up.