S’pore observes drop in most COE premiums except for Cat A, amid increased quota from LTA

In the most recent Certificate of Entitlement (COE) bidding session in Singapore, which ended on 6 December, the majority of vehicle categories saw a drop in COE premiums, with the notable exception of Category A.

Notably, there was an increase in premiums for smaller, less powerful cars, and electric vehicles (EVs), while other categories experienced a decrease.

The COE premium for Category A, which includes smaller, less powerful cars and electric vehicles (EVs), saw a significant rise, reaching S$88,020. This marks a 3.6% increase compared to the S$85,001 recorded in the previous tender. This category was the only one to register an uptick in COE premiums.

Conversely, the COE premiums for Category B, designated for larger and more powerful cars including EVs, witnessed a decline. The premiums in this category settled at S$130,100, marking a decrease of 3.9% from the previous S$135,336.

The Open category COEs, applicable for any vehicle type except motorcycles and often utilized for larger cars and EVs, also saw a decrease. The premiums in this category dropped by 1.2%, closing at S$133,388, down from S$135,002.

In the commercial vehicle segment, COE premiums reduced by 3.9%, settling at S$71,001, compared to S$73,889 in the previous tender.

Finally, the motorcycle COE premiums also witnessed a downward trend, falling by 1.4% to S$9,858 from the earlier figure of S$10,001.

In early November, the Land Transport Authority (LTA) announced an increase in the supply of COE, which are essential for vehicle ownership in Singapore.

An additional 1,614 COEs was said to be introduced into the pool over November 2023 to January 2024. This is on top of the reallocation of 1,895 COEs for smaller and larger cars from the guaranteed deregistrations.

The biggest boost is in the category for larger cars, with engines above 1,600cc or 130bhp, and electric vehicles (EVs) above 110kW, which will see an increase of 863 COEs. This is a 22.4 per cent increase, raising the total to 3,800 COEs available for this category.

For smaller cars and EVs with a power output of up to 110kW, there will be an additional 546 COEs, an 11 percent increase leading to a total of 5,513 COEs.

Commercial vehicles will also see a boost with an additional 205 COEs, taking their total to 1,129 for the November to January period.

The LTA stated, “Potential buyers may want to take note that the COE quota for Categories A, B, and C will continue to increase in 2024 before reaching the peak supply period from 2025, while Category D quota in 2024 is expected to remain comparable to 2023’s.”