COE prices down across most categories; Cat B premium drops 4.6% to $123,900
Sign up now: Get ST's newsletters delivered to your inbox
The Category A COE rate was 3.3 per cent lower than it was two weeks ago.
ST PHOTO: CHONG JUN LIANG
Follow topic:
SINGAPORE – Certificate of entitlement (COE) prices went down across most categories except for commercial vehicles on Dec 3.
The price of a Category A certificate, meant for smaller and less powerful cars and electric vehicles (EVs), came in at $105,413, 3.3 per cent lower than the $109,000 at the previous exercise on Nov 19.
The Category B COE premium for larger and more powerful cars and EVs decreased by 4.6 per cent from $129,890 in the previous exercise to $123,900.
The Open category (Category E) premium slipped by 1.6 per cent, from $125,001 to $123,000. Open category certificates can be used to register any vehicle type except motorcycles, but end up being used mostly for bigger cars.
As such certificates are transferable, they give motor dealers the flexibility to register cars without having to wait for the next tender exercise.
At $76,501, the commercial vehicle (Category C) COE rate was 0.1 per cent more than the $76,389 two weeks ago.
The COE premium for motorcycles (Category D) dropped by 5 per cent, from $8,729 to $8,289.
A COE gives a person the right to own and use a vehicle in Singapore.
After the close of the Dec 3 exercise, the Land Transport Authority (LTA) said COE prices remain high, though they are “marginally lower” than in recent exercises because of lower seasonal demand.
“We advise car buyers and dealers to be prudent in bidding for COEs,” LTA added.
Mr Nicholas Wong, chief executive of Honda agent Kah Motor, said many buyers are on holiday overseas and, in any case, are expecting COE prices to drop further, so they may wait to make a purchase.
In addition, those bidding for COEs now may not be able to register their cars before the new year, he said, so it makes sense to wait.
Mr Ron Lim, head of sales and marketing at Nissan agent Tan Chong Motor, observed that with many people travelling overseas, demand has eased, keeping premiums from rising.
However, he said the final COE bidding exercise of 2025 could spur a renewed interest in purchases, although he does not expect premiums to see significant volatility heading into 2026.
Associate Professor Walter Theseira, a transport economist at the Singapore University of Social Sciences, said that as the supply of COEs is set to rise, potential buyers are seeing that prices have been softening.
“When combined with increasing supply, (this) may be self-reinforcing,” said Prof Theseira.
“If you think prices are falling somewhat, the last thing you want to do is to get in now, before they fall further.”
The number of COEs available for the three months from November 2025 to January 2026 is 18,984
And the COE supply for Categories A and B is expected to peak from 2026.
Prof Theseira expects premiums to soften further over the course of 2026 and beyond, though the last exercise of the year – the results of which will be known on Dec 17 – will be “uncertain”.
“We don’t know if dealers may be attempting to clear orders before the EV rebate reduction affects their cost,” he noted.
The EV Early Adoption Incentive (EEAI) and Vehicular Emissions Scheme (VES) change from January 2026.
The two schemes are meant to encourage the adoption of EVs through rebates provided by the Government.
From Jan 1, 2026, the maximum combined rebate for EV buyers from both schemes will be $30,000, down from the current $40,000. This will drop to $20,000 in 2027, after the early adoption incentive ends.
