COE prices end mixed; Cat B, Open category premiums at highest since December 2023

SINGAPORE - The first certificate of entitlement (COE) tender exercise of 2025 saw the premiums for larger cars and the Open category surge to their highest levels in 13 months.

At $121,501, the price of a Category B COE, used to register larger and more powerful cars and electric vehicles (EVs), was 11.5 per cent higher than the $109,000 recorded at the previous tender exercise on Dec 18.

This is the highest since December 2023, when the Category B COE premium was $130,100.

The premium for the Open category (Category E) rose by 12.9 per cent, from $108,992 to $123,000. This was the biggest increase among the five COE categories in the latest exercise.

This is similarly the highest since December 2023, when the price of a Category E certificate was $133,388.

While Category E COEs can be used to register any vehicle type except motorcycles, they are almost always used for more powerful cars and EVs.

A COE is required to register a vehicle for use in Singapore. At current premium levels, the COE represents a significant proportion of the total price of a vehicle.

The motorcycle (Category D) COE premium rose 7.4 per cent to $9,001, from $8,381 three weeks ago.

The price of a Category A COE, meant for smaller and less powerful cars and EVs, was $93,699, 2.4 per cent lower than the $96,000 in the previous exercise.

The price of a commercial vehicle (Category C) COE recorded a decrease of 2.9 per cent to $67,891, from $69,890.

Mr Ng Choon Wee, commercial director of Hyundai distributor Komoco Motors, had expected COE premiums to fall this round because order takings tend to be lower in December when many people are travelling.

“For premiums in Cat B to go up was unexpected. And, by 11.5 per cent, it’s just too crazy,” he added.

There were 27.6 per cent more bids in the large-car and Open COE categories than in the last exercise. In contrast, the number of bids for Category A COEs dropped by 8.3 per cent.

Some motor dealers said the arrival of stock for some popular Category B COE cars drove up premiums.

The introduction of new models, such as the BYD Sealion 7, a mid-sized electric sport utility vehicle, was also a factor.

Mr Nicholas Wong, chief executive of Honda agent Kah Motor, said some budget-conscious car buyers who are looking for Category A COE cars may be holding back in anticipation of lower premiums.

The Land Transport Authority said in October 2024 that it would inject

up to 20,000 extra COEs

over the next few years from February. Following that announcement, there were signs that demand for COEs had cooled.

However, the latest COE prices show that the effect of the announcement has waned, said Ms Sabrina Sng, a managing director at Wearnes Automotive.

That is because no further details have been given since the announcement about how the additional COEs will be introduced into the system.

“If the intention is to manage demand and COE premiums, the Government should announce its plans soon. Nobody wants this kind of unpredictable fluctuations,” she said.

Ms Sng described the increases in Category B and the Open category as a “self-fulfilling prophecy”, where bidders rushed to push up COE values this round because they believe that premiums will climb even more in subsequent exercises after the upcoming Singapore Motorshow.

Dealers are expected to dangle deals at the show, which runs from Jan 9 to 12 at the Suntec Singapore Convention and Exhibition Centre.