COE premiums rise in latest bid, Category B sees slight dip

In the latest Certificate of Entitlement (COE) bidding exercise held on Wednesday, premiums for most vehicle categories saw an increase, with significant changes observed across different segments.

For Category A cars, which include vehicles of 1,600cc and below with horsepower not exceeding 130bhp, the COE premiums surged to S$83,000 from S$76,801, marking a noticeable uptick from the previous bidding exercise. This rise indicates a growing demand within this category, traditionally favored by a significant portion of car buyers in Singapore.

Conversely, premiums for Category B, which encompasses larger and more powerful vehicles, experienced a slight decrease, settling at S$96,010 from the earlier figure of S$97,000. This minor dip suggests a stabilization in the market for higher-end cars following periods of fluctuation.

The COE for commercial vehicles, including goods vehicles and buses, also saw an increase, with premiums rising to S$75,599 from S$73,001. This indicates a continued demand in the commercial sector, possibly driven by business needs and economic activities.

Motorcycle premiums were not left behind, with a rise to S$9,400 from S$8,911, reflecting an ongoing interest in two-wheelers as a preferred mode of transport for many due to their convenience and efficiency.

Notably, Open category COEs, which can be applied to any vehicle type but are primarily used for larger cars, climbed to S$95,010 from S$94,006.

This period’s COE quota, set for the February to April quarter, was increased by 2 per cent to 14,707, contrasting sharply with the previous November 2023 to January 2024 period, which saw a 27 per cent jump in supply. This earlier increase is believed to be the reason behind the reduction in COE prices during those months, illustrating the sensitive balance between supply and demand in Singapore’s COE system.