SINGAPORE – COE Prices Surge

The first Certificate of Entitlement (COE) tender of 2025 has yielded dramatic results, with premiums for larger vehicles and the Open category reaching their highest levels in over a year.

Category B COE Hits $121,501

In a staggering rise, the price for a Category B COE—designated for larger and more powerful cars, including electric vehicles (EVs)—hit $121,501. This marks an 11.5% increase from $109,000 noted in the previous tender on December 18, 2024. Additionally, this is the highest premium recorded since December 2023, when the Category B COE was priced at $130,100.

Open Category Premium Escalates

The Open category (Category E), which allows for the registration of any vehicle type except motorcycles, witnessed an even more significant surge. Its premium escalated by 12.9%, jumping from $108,992 to $123,000. This increase marks the largest among all five COE categories during the latest tender exercise and is on par with the peak of $133,388 seen in December 2023.

Impact on Vehicle Ownership Costs

As COE prices soar, it’s essential to note how the rising premiums deeply impact the overall cost of vehicle ownership in Singapore. With COEs now comprising a substantial part of the total vehicle price, potential car buyers may need to reassess their budgets if considering luxury or larger vehicles.

Motorcycle COE Premiums Also Rise

Motorcycle enthusiasts also felt the heat, as the COE premium for Category D motorcycles climbed 7.4% to $9,001, up from $8,381 just three weeks prior.

Category A and C COE Trends

In a contrast to these sizable increases, the Category A COE, aimed at smaller and less powerful cars and EVs, saw a slight dip, priced at $93,699—down 2.4% from the previous tender's $96,000. Meanwhile, the commercial vehicle (Category C) COE reflected a decrease of 2.9%, settling at $67,891, down from $69,890.

Looking Ahead into 2025

As we step into 2025, consumers and industry watchers alike will be closely monitoring how these COE price trends evolve, especially in a market already grappling with supply issues and rising vehicle costs. How long can this surge continue, and will it impact car sales in the coming months? Stay tuned for more updates!