COE Premiums Surge Across Categories Except Motorcycles in Singapore

SINGAPORE: In the latest round of bidding on June 18, 2025, the Certificate of Entitlement (COE) premiums demonstrated a notable increase across all vehicle categories, with the exception of motorcycles. The results revealed that premiums for Category A cars, which encompass vehicles with a capacity of 1,600cc or less and a horsepower limit of 130bhp, rose to S$98,124 (approximately US$76,400), marking an increase from S$96,999 in the previous bidding cycle.

Similarly, premiums for larger vehicles classified under Category B saw an uptick, climbing to S$116,670 from S$113,000. The commercial vehicle segment, which includes goods vehicles and buses, also experienced a rise in premiums, reaching S$65,000 from S$62,000. In contrast, premiums for motorcycles decreased, closing at S$8,600, down from S$9,000 in the last round of bidding. Open category COEs, versatile enough to be utilized for any vehicle type but predominantly acquired for larger cars, increased to S$116,889 from S$113,900.

A total of 4,207 bids were submitted, against a backdrop of 3,067 available COEs, indicating a competitive bidding environment. The Land Transport Authority (LTA) had previously announced a more than 6 percent increase in the COE quota for the May to July period, bringing the total to 18,232, up from 17,133 in the last quarter, which itself had seen an 8 percent increase. This year-on-year comparison reveals a substantial 21 percent increase in COE availability, reflecting heightened demand amidst a recovering economy.

According to Dr. William Tan, an economist at the National University of Singapore, the increase in COE prices is indicative of the rising demand for private vehicle ownership in Singapore, particularly as the economy continues to rebound from the impacts of the COVID-19 pandemic. This trend, however, raises concerns about affordability and accessibility to transportation for the average citizen. Dr. Tan stated, "As the economy grows, more people are looking to purchase vehicles, which is driving up COE prices. While this reflects a positive economic outlook, it also raises questions about the sustainability of vehicle ownership costs."

In a contrasting viewpoint, Mr. Adrian Lim, CEO of a local automotive dealership, noted that the fluctuations in COE premiums are part of a larger trend influenced by supply chain disruptions and the ongoing recovery from the pandemic. He expressed optimism about the future, stating, "As the supply chain stabilizes, we may see a easing of COE prices in the coming months, allowing more individuals to enter the vehicle ownership market."

The implications of rising COE premiums extend beyond individual consumers; they also impact the broader automotive market and urban planning initiatives. Increased vehicle ownership can lead to heightened congestion and environmental concerns, prompting policymakers to consider alternatives such as public transport enhancements and stricter vehicle quotas.

As the government continues to adapt its transportation policies, the interplay between COE prices, vehicle demand, and urban planning will remain a critical area for analysis. Stakeholders from various sectors, including urban planners, environmental advocates, and automotive industry leaders, will need to collaborate to find sustainable solutions to the challenges posed by rising COE premiums.

In conclusion, while the latest COE bidding outcomes reflect a robust demand for vehicles in Singapore, they also highlight significant challenges related to affordability and urban sustainability. The government and industry leaders must navigate these complexities carefully to ensure equitable access to transportation for all Singaporeans.