COE premiums rise across all categories, with smaller car premiums reaching one-year high

Certificate of Entitlement (COE) premiums in Singapore increased across all categories during the latest bidding exercise on 9 October 2024, with the price of the Category A COE—intended for smaller and less powerful cars and electric vehicles (EVs)—reaching a one-year high of $103,799. This represents a 5.4 per cent increase over the $98,524 recorded in the previous exercise held on 18 September 2024. The last time the Category A premium was higher was in October 2023, when it reached $106,000. The Category B COE, which applies to larger and more powerful cars and EVs, also experienced a significant price increase. It climbed 5.5 per cent to $116,002, up from $110,001 in the last tender. The Open Category COE, or Category E, closed at $116,000, marking a 2.6 per cent rise from the previous price of $113,104. Category E certificates are typically used to register larger vehicles, despite being available for all vehicle types except motorcycles. In the commercial vehicle segment, Category C COE premiums rose to $75,009, an increase of 1.4 per cent from the $74,000 recorded in the previous round of bidding. Motorcycle COE premiums (Category D) saw a 1 per cent increase, closing at $10,001 compared to $9,900 in the prior exercise. According to the Land Transport Authority (LTA), the certificate quota will increase by 3.6 per cent for the bidding period from November 2024 to January 2025, rising to 15,834 from the current 15,283 certificates available between August and October 2024. This upcoming increase in the COE quota could provide some relief for vehicle buyers, as more certificates typically help to moderate prices. However, in the short term, the combination of pent-up demand from the longer tender gap and heightened interest from the Car Expo appears to have driven up premiums. COEs, which grant individuals the right to own and operate a vehicle in Singapore for a period of 10 years, remain a crucial component of the city's vehicle ownership system. Due to limited land space and a focus on managing traffic congestion, Singapore maintains strict controls on vehicle ownership through the COE scheme, resulting in fluctuating premiums based on supply and demand dynamics. With the latest price hikes, those looking to purchase new vehicles in Singapore face increased costs, especially for smaller cars and EVs.