In the latest round of Certificate of Entitlement (COE) bidding in Singapore, there was a mixed outcome as premiums for smaller cars saw a slight increase, while other vehicle categories experienced a drop. The results reflect ongoing fluctuations in the COE market and the government’s efforts to balance vehicle supply with its zero-vehicle growth policy.
Variations in COE Premiums
- Category A (Small Cars): Premiums for cars in Category A, which includes vehicles 1,600cc and below with horsepower not exceeding 130bhp, experienced a marginal rise, closing at S$88,020 (US$65,700), up from the previous S$85,001.
- Category B (Larger Cars): In contrast, the premiums for larger and more powerful cars in Category B witnessed a decrease, falling from S$135,336 to S$130,100.
- Open Category: Similarly, Open category COEs, typically used for larger cars, saw a drop from S$135,002 to S$133,388.
- Commercial Vehicles: The COE prices for commercial vehicles, including goods vehicles and buses (Category C), also decreased, settling at S$71,001 from S$73,889.
- Motorcycles: Motorcycle premiums ended lower at S$9,858, a decrease from S$10,001.
Record Highs and Adjustments
The latest COE bidding exercise comes in the wake of record highs reached in October, where Category B and Open Category COE prices soared to S$150,001 and S$158,004, respectively. To address the tight supply situation in categories A, B, and C, the government, as per Acting Minister for Transport Chee Hong Tat, plans to advance more COE quota from future peak years to the current period. This strategic move is part of Singapore’s broader zero-vehicle growth policy.
Anticipating Changes
The increase in COE quotas, which will rise significantly from the second half of 2024 and peak between 2026 and 2027, is expected to impact the market dynamics. This adjustment aims to address the limited supply due to a significant number of vehicles not reaching the end of their COE lifespan.
Conclusion
The latest COE bidding results highlight the dynamic nature of Singapore’s vehicle market and the government’s efforts to manage vehicle population growth. While small car owners face slightly increased costs, other vehicle owners benefit from reduced premiums. As the government continues to fine-tune its policies, such fluctuations are expected to continue, reflecting the complex balancing act of maintaining sustainable vehicle growth in Singapore.
Also learn about Changes in Singapore’s COE Premiums.
