SINGAPORE — Certificate of Entitlement (COE) prices fell further for smaller cars, with Category A premiums dropping by S$10,688 in the latest bidding exercise which ended on Wednesday (22 November).
Premiums for larger cars – Category B and the Open Category – climbed by up to S$25,335.
Category A premiums – reserved for cars up to 1,600cc and 130bhp or electric vehicles (EV) up to 110kW – fell to S$85,001.
The next largest price fall was in the commercial vehicles' Category C – which includes buses and goods vehicles – where premiums fell by S$4,112 to reach S$73,889.
COE premiums for motorcycles, or Category D, closed lower at S$10,001, dropping by S$888 from the last tender.
Premiums for Category B, which is for larger and more powerful cars, closed at S$135,336 after a significant S$25,335 increase – the largest increase of the tender.
Category E, which can be used for all vehicle types except for motorcycles, closed at S$135,002 – premiums increased by S$9,991.
A total of 3,912 bids were received, with a quota of 2,459 COEs available for bidding.
The Land Transport Authority (LTA) previously announced an increase in COE supply for the November 2023 to January 2024 period on 13 October.
In addition to the increase, LTA announced a further increase to COE quotas for Category A, B and C for the same quarter on 3 November, bringing the total COE quota for the quarter to 14,388.
A summary of the latest bidding results is as follows:
CAT E (OPEN)
Prevailing Quota Premium (PQP)
What is COE?
The COE gives the owner the right to register and use a vehicle in Singapore for 10 years. It can be obtained through an online open auction conducted twice a month. Bidding exercises usually start at 12pm on the first and third Monday of the month, and last for three working days. Each bidding will end at 4pm on Wednesday, if there is no public holiday in between.
The vehicle quota in each category will be announced before the start of each bidding exercise.
After 10 years, when the COE expires, an owner can choose to de-register the vehicle or renew the COE.
How is the COE quota counted?
Since 1 February 2023, the number of COEs available for bidding in the corresponding vehicle category in each quarter is the rolling average of the number of vehicles deregistered over the previous four quarters.
Will the COE price drop?
COE prices, of course, can drop – it is dependent on supply and demand.
Since 2017, the Land and Transport Authority has been freezing vehicle population growth and in October 2021 the authority announced that the 0 per cent growth rate will be maintained until 31 January 2025.
Singapore is one of the costliest places in the world to buy a car – in fact, in 2022, the Global Wealth and Lifestyle Report 2022, released by Swiss private bank Julius Baer, found Singapore cars were the most expensive globally.