There will be more Certificates of Entitlement (COEs) for the February-April quota period.
The Land Transport Authority announced yesterday that there will be on average 8,795 COEs available each month during the period, up 8.9 per cent.
For car buyers and sellers, the increase is slightly sharper at 11.6 per cent, with the number of COEs (including for the Open category) available per month rising from 6,973 to 7,781.
The increased supply comes on the back of more vehicles being taken off the road in the preceding three months.
Market observers expect the added supply, coupled with a weakening economy, to send premiums south.
COE premiums ended mostly lower in the latest tender on Wednesday, despite expectations of higher demand from the recently ended Singapore Motorshow.
The COE price for cars up to 1,600cc and 130bhp inched upwards by 1.6 per cent to finish at $50,889, while those for cars above 1,600cc or 130bhp ended at $52,807, a dip of 0.6 per cent from the previous close.
The premium for the Open category, which can be used for any vehicle type but ends up mostly being used for bigger cars, was 0.8 per cent lower at $52,600.
Industry players said fears of an economic slowdown and more job losses this year may have dampened the buying fervour that usually follows a motor show.
Organisers said more than 47,000 people flocked to the Singapore Motorshow 2017, which ended on Sunday at Suntec Convention Centre. - THE STRAITS TIMES