FOLLOWING a dramatic fall two weeks ago, COE premiums rebounded strongly at the latest tender on Thursday.

Certificate of entitlement (COE) for cars up to 1,600cc, such as the new Toyota Altis and Mazda2, ended at $15,701. The premium for cars above 1,600c, such as Honda's latest Accord and BMW's 1-series, closed at $17,113.

Both were back to levels before last fortnight's plunge, which saw prices fall by as much as 29 per cent.

Singapore Vehicle Traders Association president Neo Nam Heng said: 'Buyers have come back into the market after last round's fall. So there is still a demand for cars.'

There were 5,565 bids for car COEs - 15 per cent more than the previous tender.

But bidders for Open COEs - which can be used for any vehicle but end up mostly for cars - were less bullish. The Open premium closed merely 1.2 per cent higher at $16,700 - nowhere near the pre-fall level of $18,451 last month (april).

Motor traders reckon bidders in this category, some of whom are speculators who secure COEs to resell them for profit, are cautious because of the recent plunge in prices.

Mr A C Neo, marketing director at Nissan agent Tan Chong, said many bidders still have on hand relatively expensive Open COEs , so 'they're averaging downwards'.

Open COEs are valid for three months before they expire, unlike the other two non-transferable car COEs, which last for six months.

Meanwhile, the COE for commercial vehicles continued to head south. It finished 7.1 per cent lower on Thursday at $14,756.

Motorcycle COE ended lower too, losing 14 per cent in value to $1,109.