COE premiums rise in all categories except motorcycles; Cat B at $123,498, highest since Dec 2023
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The price for a Category B COE, meant for larger and more powerful cars and electric vehicles (EVs), increased by 3.7 per cent to $123,498 from $119,101.
PHOTO: LIANHE ZAOBAO
- Singapore's Category B COE price rose 3.7% to $110,000, a record high. The Open category COE also increased to $110,801.
- Increased COE supply wasn't enough to meet demand, with bids exceeding supply increase, driven by private buyers and upcoming COE expirations.
- Traders cite new Category B models and a narrowing price gap with Category A as factors driving demand, despite a dip in motorcycle COE prices.
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SINGAPORE – Certificate of entitlement (COE) prices rose across the board except for motorcycles at the latest tender exercise on Aug 6.
The price for a Category B COE, meant for larger and more powerful cars and electric vehicles (EVs), increased by 3.7 per cent to $123,498 from $119,101.
This is the highest price for the COE category since December 2023 when it hit $130,100.
At $102,009, the premium for a Category A COE, meant for smaller and less powerful cars and EVs, was 0.9 per cent above the $101,102 price at the previous exercise.
The Open category (Category E) COE was priced at $122,334, 1.9 per cent higher than the $120,000 price at the previous exercise.
While Open category COEs can be used to register any vehicle type other than motorcycles, they tend to be used for bigger and more powerful cars.
The commercial vehicle (Category C) premium climbed 2 per cent from $68,600 to $70,001.
The price of a motorcycle COE (Category D) dipped 3.4 per cent to end at $9,189, from $9,511.
A COE is needed to register a vehicle in Singapore.
This is the first tender under the new three-month quota period
At the latest exercise, there were 4,592 bids received across the five COE categories – 2.5 per cent more than the 4,480 bids received at the previous exercise.
Mr Soh Ming, managing director of Dongfeng authorised dealer Volt Auto, said that the demand for Category B COEs at the latest tender may partly be attributed to the price gap with Category A COEs narrowing slightly at the previous round to $17,999, from $18,546 a month ago.
He said that some buyers may see it as an opportunity to get a more powerful model.
The dealership, which sells only EVs, has also noticed a significant increase in the number of cars nearing the end of their 10-year COE being traded in for new EVs.
Mr Ng Choon Wee, commercial director of Komoco Motors which distributes Hyundai, noted that the combined increase in the supply of COEs for larger cars and the Open category (6 per cent more than before) was outstripped by the 12.8 per cent increase in the number of bids entered for such COEs.
Mr Ng said that the demand is coming from private users, as commercial fleet owners have been less aggressive in buying new cars over the past six months.
Mr Lee Hoe Lone, managing director of Premium Automobiles, which distributes Chinese EV brands Avatr, Xpeng, Zeekr and Changan, said the tender results suggest that the increase in COE supply is lagging behind rising demand, specifically from owners of vehicles that are due to be scrapped in the coming months because their COEs are due.
“Unless these owners give up owning a car, they will need to buy a new – or used – one soon,” he said.
Mr Ron Lim, head of sales and marketing at Nissan agent Tan Chong Motor, said that the recent influx of new brands is pushing up COE premiums as companies jostle for market share.
Motor traders also said that the launch of new Category B COE models in recent months from brands such as BYD and Mercedes-Benz would have also contributed to the demand for this COE category.
