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COE premiums fall across all categories in latest bidding exercise

Certificate of Entitlement (COE) premiums dropped across all categories in the bidding exercise on 22 January 2025. Premiums for small cars fell to S$93,601, while open category COEs closed at S$115,112. The supply of COEs will increase by 8% from February to April.

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Certificate of Entitlement (COE) premiums fell across all categories in the latest bidding exercise held on 22 January 2025. The drop comes as the overall supply of COEs is set to increase in the upcoming quarter, potentially alleviating price pressures.

For Category A cars, defined as those with an engine capacity of 1,600cc or below and horsepower not exceeding 130bhp, premiums closed at S$93,601, down from S$93,699 in the previous bidding exercise.

Premiums for Category B cars, which include larger and more powerful vehicles, dropped significantly to S$116,625, compared to S$121,501 in the last exercise.

The COEs for commercial vehicles, including goods vehicles and buses, fell to S$65,476 from S$67,891. Motorcycle premiums also experienced a decline, closing at S$7,709, down from S$9,001.

Open category COEs, which can be applied to any vehicle type but are mainly used for large cars, recorded a decrease, closing at S$115,112, compared to S$123,000 previously.

In total, 3,895 bids were received during this exercise, with 2,715 COEs available.

Earlier this month, the Land Transport Authority (LTA) announced that the overall supply of COEs for the February to April period will increase by 8% compared to the previous quarter. This will bring the total number of COEs to 17,133, up from 15,834 in the previous quarter.

The quotas for Categories A, B, C, and E will increase by approximately 10%, while the quota for Category D will remain unchanged. The first bidding exercise under the new quota will commence on 3 February.

The increase in COE supply aligns with the government’s plans to progressively release up to 20,000 additional COEs across all vehicle categories starting February. This move aims to address demand amidst the upcoming implementation of the ERP 2.0 system, which will modernise traffic congestion management.

By expanding the COE supply, authorities hope to stabilise premiums in a market that has seen significant fluctuations over the past year.

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