Singapore’s COE premiums fluctuate: Smaller cars drop, larger cars and Open Category rise

SINGAPORE: In the latest Certificate of Entitlement (COE) bidding exercise on Wednesday (22 Nov), premiums for smaller cars in Singapore continued their downward trend, while those for larger vehicles and the Open Category saw an increase.

This change in pricing dynamics follows a recent fall in COE premiums across all categories after an increase in the quarterly quota.

For Category A cars, defined as those with engine capacities of 1,600cc and below and horsepower not exceeding 130bhp, premiums fell to S$85,001 (US$63,446), a significant decrease from the previous S$95,689.

In contrast, premiums for Category B vehicles, which include larger and more powerful cars, climbed to S$135,336, up from S$110,001.

Open category COEs, applicable to any vehicle type but predominantly used for large cars, also experienced a rise, reaching S$135,002 from S$125,011.

In the commercial sector, COEs for vehicles like goods vehicles and buses decreased to S$73,889 from S$78,001.

Motorcycle premiums saw a modest decrease, closing at S$10,001, down from S$10,889. The bidding exercise attracted a total of 3,912 bids against a quota of 2,459 COEs.

This fluctuation comes after record-high premiums were observed in October, with Category B and Open Category COEs reaching S$150,001 and S$158,004, respectively.

Addressing the current trends, Acting Minister for Transport Chee Hong Tat earlier announced plans to bring forward more COE quota from peak years to alleviate the current supply shortages, aligning with Singapore’s zero-vehicle growth policy.

He highlighted that Categories A, B, and C are currently facing a “tight supply situation” due to many vehicles not yet reaching the end of their COE lifespan.

However, Mr Chee assured that the COE supply for these categories is expected to significantly increase from the second half of 2024 and peak between 2026 and 2027.