With the new COE categorisation all set to take effect from next month, the chase for COE for large capacity cars seems to have began. Many have speculated that demand for Category B and Category E COEs will go up, as more cars will now fall into these two categories. With more people fighting for the same piece of pie, there is little doubt that premiums will rise.

Based on data from LTA, The Straits Times has predicted that COE supply will shrink up to 14 percent between February and July. Car dealers have also anticipated more challenging times ahead. 

This may also spark a rush for car buyers to enter the market in the next few bidding exercises.

Category A premiums, for cars up to 1,600cc in displacement, ended at $72,369 - a mild drop of $1,633 or 2.2 percent from $74,002 two weeks ago.

Premiums for Category B, for cars with displacements larger than 1,600cc, ended strong after the first bidding of the year. Prices rose by $3,000 or 3.81 percent to finish the tender at $78,700 - from $75,700 back in late December.

Similarly, premiums for the Open Category, or Category E, rose from $77,501 to $79,000 at the end of today. This amounts to an increase of $1,499 or around 1.9 percent.