In the first COE bidding exercise of 2016, premiums across all categories fell, with a dramatic drop in price for Cat A COEs.

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output of no more than 130bhp, fell by $9,299 (21 percent) to end the bidding tender at $45,002.

Premiums for Cat B, larger cars with more than 130bhp or engine displacement larger than 1,600cc, decreased by $81 (0.1 percent) and ended at $54,920.

In Cat E, the open category, prices went down $2,412 (4.4 percent), with premiums closing at $55,089.

With 2015 having just come to a close, the fall in COE prices for Cat A could be a result of cars being deregistrated at the end of 2015. With Cat A prices falling under $50,000 for the first time since early 2012, we can expect prospective new car buyers to be rushing to the showrooms, as well as turning out in force at the upcoming Singapore Motor Show. As such, even with COE prices on a recent downward trend, spike in demand could see COE prices go up in Febuary after the Singapore Motor Show.