Cat A COE premium climbs 7.3% to $109,501; Cat B rate up 2.1%

SINGAPORE – The price of a Category A certificate of entitlement (COE) rose by 7.3 per cent on Jan 21, while the Category B premium rose by 2.1 per cent.

The premium for a Category A COE, meant for smaller and less powerful cars and electric vehicles (EVs), was $109,501, up from $102,009 at the

previous exercise that closed on Jan 7

.

Meanwhile, the premium for a Category B COE, for larger and more powerful cars and EVs, rose from $119,100 to $121,634.

In the Open category, otherwise known as Category E, the price of a certificate dipped nearly 1 per cent from $122,000 to $120,891.

Certificates in this category can be used to register any vehicle type except motorcycles and usually end up being used for bigger cars.

Such certificates are also transferable, giving motor dealers the flexibility to register cars without having to wait for the next tender exercise.

The COE for commercial vehicles (Category C) was priced at $75,202 – a 0.4 per cent drop from $75,503 previously.

The motorcycle COE premium (Category D) recorded a 2 per cent rise from $8,689 to $8,860.

The Land Transport Authority (LTA) said on Jan 21 that the higher COE premiums could be owing to seasonal demand arising from the Singapore Motorshow and the upcoming Chinese New Year period.

“We strongly advise car buyers and dealers to be prudent in bidding for COEs,” it said.

The Singapore Motorshow was held from Jan 8 to 11 at Suntec Singapore.

Mr Jason Lim, managing director of the Eurokars Auto BMW dealership, also attributed the rise in the Category A COE premium to strong car sales at the motor show.

He noted that the event drew a record 37 exhibitors and said he had expected premiums to rise in the COE exercise immediately after the show.

Mr Lim said he expected COE prices to rise in the next few bidding exercises, citing the high number of bids submitted after the motor show. Unsuccessful bids are likely to roll over into the next exercises, putting upward pressure on premiums, he added.

Ms Corinne Chua, managing director of Volvo Cars at multi-brand distributor Wearnes Automotive, said she expected COE premiums to rise after the motor show, as more orders were collected and many buyers rushed to secure deliveries before Chinese New Year.

With many Category A EVs showcased at the motor show, the sharp increase in premiums was not surprising, she added.

But she did not expect the Category A premium to continue climbing, noting that current levels reflect prices seen at the end of December 2025 before they eased, suggesting this is the threshold most customers are willing to pay.

The Category A price fell on Jan 7 by 6.8 per cent to $102,009 from the previous tender.

For Category B, unsuccessful bids in the latest round were not significantly higher, indicating premiums are likely to remain around current levels, Ms Chua said.

Buyers who were keen to purchase would have done so at the motor show, making a further spike in demand – and prices – unlikely, she said.

Two COE bidding exercises are held each month.

A certificate gives the holder the right to register a vehicle in Singapore. The cost of securing one is usually included in the selling price of a vehicle.

This was the final COE bidding exercise before the COE quota for the next three-month period, from February to April, is issued. LTA is expected to announce the new quota soon.