Certificate of Entitlement (COE) premiums declined across most categories on 20 November, with Category A premiums experiencing a significant S$10,000 decrease.
This marks a 10 per cent drop, bringing the cost to S$89,889. It is the third consecutive tender where prices for Category A, which includes smaller and less powerful cars and electric vehicles (EVs), have fallen. This also represents the steepest drop for the category since January, when premiums declined by S$19,990.
Category B COE premiums, covering larger and more powerful cars and EVs, decreased by 2.7 per cent to S$105,081, down from S$108,001 at the previous tender. S
imilarly, Open Category COEs, which are versatile and commonly applied to larger vehicles, dropped by 1.4 per cent, landing at S$107,501 compared to S$109,000 two weeks prior.
Motorcycle COEs (Category D) also saw a decline, falling by 4.6 per cent to S$8,669 from the previous price of S$9,089.
In contrast, commercial vehicle COE premiums (Category C) increased by 1 per cent, rising to S$69,000 from S$68,340. This category covers vehicles like goods vans and buses.
This overall trend of declining premiums in recent months has been attributed to a combination of factors, including fluctuating demand for vehicles and adjustments to COE quota allocations. Analysts note that the S$10,000 reduction in Category A prices could be linked to softer consumer demand and a higher-than-expected quota release in recent months.
The COE system, central to Singapore’s vehicle ownership policies, allocates a limited number of certificates through a bidding process, ensuring vehicle growth aligns with infrastructure capacity. Prices often fluctuate based on demand, economic conditions, and changes to government regulations.
Motorists and industry stakeholders are closely monitoring future tenders as prices remain highly variable. Some anticipate further adjustments in COE premiums as market conditions evolve, particularly in the lead-up to year-end vehicle registration deadline.
