The oversubscribed rate for the October 1st bidding exercise was 30% for Category A, 23% for Category B and 82% for Category E (Open) COEs. I was surprised that the demand was not strong and Category B quota premium fell. COE prices are expected to rise during year-end festive season as reported by Channel News Asia.
I do not think that the quota premium for Category A will breach the $20K mark in the next bidding exercise. Category A quota premium should raise with dealers throwing goodies to drum up demand. Dealers will also bid more aggressively for Category B COEs rather than to rely on the more costly Category E COEs.
Prediction on October 12:
Category A: $18,000-19,000
Category B: $20,000-21,000
Verdict on October 21:
Category A: $18,899
Category B: $19,510
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