In the first COE bidding exercise in February, premiums for COEs across all categories fell, with Cat B seeing the most significant drop, falling to its lowest price in five years.

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output of no more than 130bhp, went down by $4,650 (9.1 percent) to end the bidding tender at $46,561

Premiums for Cat B, larger cars with more than 130bhp or engine displacement larger than 1,600cc, decreased by $11,479 (23 percent) and ended at $38,610.

In Cat E, the open category, prices went down $6,999 (13 percent), with premiums closing at $44,001.

The increased COE supply for February to April is a likely contributing factor to the drop in COE prices, even as the number of bids received far outpaced the quota for each category. In a holdover pattern from the previous bidding exercise, Cat A COEs also remained higher than both Cat B and E. With Chinese New Year just around the corner, we can expect car buyers to eagerly head down to showrooms to check out CNY promotions available.