Singapore's Certificate of Entitlement (COE) premiums have risen significantly in the latest bidding exercise, reflecting a growing trend observed in recent months. On March 19, 2025, the second COE bidding exercise for the month showcased notable increases across all categories, continuing the momentum from the first exercise earlier this month. Premiums for Category A, which includes cars with a capacity of up to 1,600cc and a power output of less than 130hp, as well as electric cars with a power output up to 110kW, saw an increase of $1,772, closing at $94,502. Meanwhile, Category B premiums, designated for internal combustion engine (ICE) cars exceeding 1,600cc and 130hp—along with electric vehicles over 110kW—rose by $3,890, bringing the final figure to $116,890.
Furthermore, the COE premiums for Category C, which includes goods vehicles and buses, increased by $3,088 to a final price of $70,089. Category D, reserved for motorcycles, closed at $9,511 after an increase of $310. The biggest jump, however, was seen in Category E, which is open to all vehicles except motorcycles that saw premiums increase by $4,090, ending the bidding session at $116,991.
Here's a summary of the latest COE bidding exercise:
The Prevailing Quota Premium (PQP) for these categories reflects ongoing trends in the COE market, impacting the potential costs associated with renewing COEs at the end of their tenure. For instance, the PQP for Category A in March 2025 stands at $92,525, with a subsequent value of $92,064 in April. Meanwhile, Category B's PQP for March is noted at $111,807, showing a slight rise from future expectations for April priced at $114,787. Categories C and D are also experiencing similar fluctuations in PQP, signifying an active market.
According to the Land Transport Authority (LTA), the recent changes in COE premiums are part of broader efforts to stabilize the supply of vehicles in Singapore, especially private-hire cars. Earlier this month, the LTA introduced new measures aimed at ensuring a more transparent registration process for private-hire vehicles. This includes mandatory vehicle history disclosures for all newly registered or converted private-hire cars. In February, the LTA also set forth a new three-year lock-in period for all such vehicles owned by businesses, further controlling how these vehicles are used within the ride-hailing market.
A total of 4,624 bids were received during the latest bidding exercise, which came with a quota of 2,885 COEs available for allocation. As the competition intensifies for these certificates, stakeholders are paying close attention to how future bidding rounds might unfold given the current trajectory of COE prices.
In essence, these recent increases in COE premiums across all categories underscore significant shifts in Singapore's automotive market, influenced by varying demand, regulatory measures, and economic conditions.
