Singapore has witnessed a notable decline in the premiums for Certificates of Entitlement (COE), particularly in the category for larger and more powerful vehicles. On Wednesday, December 20, the premiums for all COE categories experienced a downward trend, with Category B, dedicated to larger cars, showing a remarkable decrease of over S$20,000 (US$15,045).
Major Drop in Premiums
Category B, which caters to vehicles with more power and larger sizes, saw its premium drop by 15%, from S$130,100 to S$110,001. This significant reduction reflects a shift in the COE market, making larger cars more accessible to potential buyers.
The premiums for Open category COEs, which are generally utilized for larger vehicles, also experienced a decrease. The premium fell from S$133,388 to S$118,388, aligning with the overall trend of lowering COE costs.
Declines Across Other Categories
The trend of decreasing premiums was not limited to larger vehicles. Category A COEs, which are for cars with a capacity of 1,600cc and below and a maximum horsepower of 130bhp, also saw a reduction in premiums, closing at S$85,000 compared to the previous rate of S$88,020.
Similarly, COE premiums for commercial vehicles, including goods vehicles and buses, witnessed a decline, falling to S$69,423 from S$71,001. Motorcycle premiums also dropped, closing at S$9,002, down from S$9,858.
Bidding Statistics
The recent bidding exercise saw a total of 3,246 bids, with an available quota of 2,447 COEs. This follows a period of record-high premiums in October 2023, where prices for Category B and Open Category COEs soared to unprecedented levels.
Implications of Reduced Premiums
The decrease in COE premiums across various categories suggests a changing dynamic in Singapore’s vehicle market. With the reduction in costs, larger and more powerful cars have become more accessible, potentially influencing buyer decisions and market trends in the automotive sector. This shift is significant, considering the previous record-highs in COE prices, and may signal a more balanced approach to vehicle ownership and growth in Singapore.
Also learn about Mixed Results in Singapore’s Latest COE Bidding: Small Car Premiums Up, Others Dip.
