THE premium for the Category A certificate of entitlement (COE) is now just $611 shy of the all-time high of $56,600 reached in October 1994.
At the close of tender yesterday, the prices of Category A COEs (for cars up to 1,600cc and taxis) had accelerated by 11.5 per cent to $55,989.
Prices in three other categories are at their second-highest levels for this year.
Open Category COEs posted a 5.1 per cent increase to reach $68,811. They can be used for any vehicle type but are mainly used for bigger cars.
The premium for Category B COEs (for cars above 1,600cc) climbed by 1.2 per cent to $68,501, while that for commercial vehicles rose by 4.6 per cent to $32,590.
Motorcycle COE prices revved up by 3 per cent to $2,360.
COEs, which give one the right to buy a car, are central to Singapore’s vehicle quota system, which enables the Government to control the growth of the vehicle population and road congestion.
Motor industry players said the increase in Category A premiums was due to strong buying sentiment and the launch of new cars such as the Volkswagen Jetta sedan last week.
Mr Leon Gumpert, general manager of sales at Volkswagen Singapore, did not want to disclose sales figures but said the company is pleased with buyers’ response to the Jetta’s launch.
He also attributed the premium hikes to more people buying cars because of an increase in the number of cars scrapped in May.
According to Land Transport Authority data, about 2,000 cars – mostly models up to 1,600cc – were scrapped in May, nearly 40 per cent more than the January to April monthly average.
Demand for Category A COEs was also propped up by aggressive bids from Premier Taxis.