Falling Prevailing Quota Premium (PQP): should you renew COE?
Is this a good opportunity for Singaporeans to renew their COEs as PQP slipped for 3 consecutive months? Continue reading to find out what is the best option if you are planning to renew your COE.
In the second bidding exercise in November, the total number of Certificates of Entitlements (COEs) received a low number of bids, at only 5,061 across all categories. This is also the lowest since February this year; about 4,000 bids lesser when compared to second bidding in July which the number bids received was 9,188 (highest this year).
PQP chart for Cat A & B shows a good opportunity to renew your COE
The lower number of bids often lead to lower PQP prices. PQP prices for Cat A and B closed at $51,271 and $55,187 respectively. The PQP trend chart shows a steady drop in PQP prices for both Cat A and B for consecutive 3 months.
As we all know, PQP prices don’t fluctuate as much as COE premiums as PQP depends on the QP moving average over the span of the last three months., if your COE is expiring January 2017, you should not renew now, instead wait for next month’s PQP results because you will have a better chance for a lower PQP price.
The stable and slight fall in prices for COE premiums are the causes of the falling PQP prices. This might be that car buyers are holding back as they are worried that the premiums will increase due to recent regulations from Land Transport Authority (LTA) to lower the number of bids quota as well as the increase of public parking charges in Singapore.
However, if you are worried about the rising interest, you may choose to renew your COE sooner than later. It is inevitable that rising interest rates from the United States will increase the interest rates in Singapore. Want a hassle-free and most importantly, a low interest rate to renew your COE? Don’t wait, inquire now to renew your COE with us today.