Premiums for larger cars hit a record high in the latest bidding exercise, with open category COEs also rising.
In the latest Certificate of Entitlement (COE) bidding exercise, Category B premiums in Singapore have soared past the S$150,000 mark for the first time, setting a new record high. Premiums for other car categories have also seen significant increases, marking a challenging environment for potential car buyers in the country.
Category B Premiums Reach Unprecedented Levels
Category B COEs, which cover larger and more powerful cars, have reached a historic high of S$150,001, up from S$146,002 in the previous bidding exercise. Open category COEs, often used for large cars, have similarly surged to a new high of S$158,004, compared to S$152,000 in the previous round.
This remarkable increase comes just a month after COE premiums in both Category B and the Open Category crossed the S$140,000 threshold, highlighting the ongoing challenges faced by consumers looking to purchase larger vehicles.
Premium Increases Across the Board
Premiums for other car categories have also seen substantial increases. Category A COEs, applicable to cars with engine capacities of 1,600cc and below and horsepower not exceeding 130bhp, reached a record high of S$106,000, compared to S$104,000 in the previous exercise.
COEs for commercial vehicles, which include goods vehicles and buses, experienced a slight decrease to S$84,790 from S$85,900, providing some relief in an otherwise challenging market. Motorcycle premiums closed at S$11,201, up from S$10,856 in the last bidding exercise.
High Demand and Limited Supply
The surge in COE premiums can be attributed to several factors. High demand for cars, particularly larger and more luxurious models, has driven competition in Category B and the Open Category. Additionally, limited supply due to government quotas has exacerbated the situation, resulting in soaring premiums.
The Land Transport Authority (LTA) recently announced its plan to reallocate an additional 300 Category A COEs for October, marking a 24% increase in the Category A quota for the month. These additional COEs aim to alleviate some of the pressure in this category.
Starting from next month, the COE quota will increase by 13% over the coming quarter, from November 2023 to January 2024. The most significant increases will be seen in categories A and C, with a total of 12,774 COEs allocated for the quarter, as announced by the LTA on October 13.
Challenging Times for Car Buyers
The continued rise in COE premiums, especially in Category B and the Open Category, poses significant challenges for prospective car buyers in Singapore. As demand remains high and supply limited, consumers may face higher costs when purchasing larger or more powerful vehicles. The situation underscores the need for potential buyers to carefully consider their options and budget when navigating Singapore’s competitive car market.
Also learn about COE Premiums for Larger Cars Soar, Breaking Previous Records.
