Certificate of Entitlement (COE) premiums increased across all categories in the latest bidding exercise on 19 March, with the Open category seeing the most significant rise.
For Category A cars, which include vehicles up to 1,600cc with a maximum horsepower of 130bhp, premiums climbed to S$94,502 from S$92,730 in the previous exercise.
Category B, which covers larger and more powerful cars, saw premiums rise to S$116,890, up from S$113,000.
Commercial vehicle COEs, which apply to goods vehicles and buses, also increased, reaching S$70,089 from S$67,001.
Motorcycle premiums rose slightly to S$9,511 from S$9,201 in the last exercise.
The Open category, which can be used for any vehicle type but is mainly allocated to larger cars, recorded the highest jump, increasing to S$116,991 from S$112,901.
In total, 4,624 bids were submitted, with only 2,885 COEs available.
Regulatory changes impacting COE market
The increase in COE prices follows recent regulatory measures introduced by the Land Transport Authority (LTA) aimed at stabilising the supply of private-hire cars.
Earlier in March, LTA mandated that all newly registered, converted, or transferred private-hire vehicles must have their history disclosed.
This rule applies to cars registered using COEs obtained from the bidding exercise that ended on 5 March.
In February, LTA also implemented a three-year lock-in period for all newly registered or converted chauffeured private-hire vehicles owned by businesses. The rule also extends to cars transferred from individuals to businesses.
According to LTA, this policy ensures that businesses acquiring these vehicles use them primarily for leasing to drivers providing ride-hailing services.
It also aims to prevent vehicles from being prematurely converted out of the chauffeured private-hire car scheme, which could reduce the number of vehicles available for point-to-point transport services.
Industry experts suggest that the rise in COE prices could be influenced by these regulatory changes, as well as overall demand for private-hire and passenger vehicles.
The limited supply of COEs available in this round of bidding may have further contributed to the price increases.
With ongoing adjustments in regulations and demand patterns, COE premiums may continue to fluctuate in the coming bidding exercises.
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