In Singapore's latest Certificate of Entitlement (COE) bidding exercise on March 19, 2025, premiums surged across all categories, reflecting the complex interplay of market dynamics and regulatory changes impacting car ownership.
Category A, which includes vehicles up to 1,600cc and a maximum of 130bhp, saw its premium rise to S$94,502, a jump from the previous price of S$92,730. Similarly, Category B premiums for larger cars increased to S$116,890 from S$113,000. Commercial vehicle COEs, applicable to goods vehicles and buses, reached S$70,089, up from S$67,001, while motorcycle premiums slightly climbed to S$9,511 from S$9,201.
The most significant rise was recorded in the Open category, which allows for the bidding of any vehicle type but is mainly allocated for larger cars. Open category premiums increased to S$116,991 from S$112,901. In total, the March bidding attracted 4,624 bids, yet only 2,885 COEs were available, underscoring a notable demand outpacing supply.
Industry experts are linking these price changes to regulatory moves made by the Land Transport Authority (LTA). Recent measures mandated that all newly registered, converted, or transferred private-hire vehicles must disclose their history, effective immediately for COEs obtained from the exercise held at the beginning of March. Furthermore, LTA implemented a three-year lock-in period for newly registered or converted chauffeured private-hire vehicles, a change intended to stabilize the supply of vehicles in the market.
Commenting on the current market conditions, a senior executive from a major dealership in the Alexandra motor belt remarked: "As we approach the first quarter close, dealers are looking to secure COEs in this round, given the upcoming three-week break before the next bidding. For those with urgency, this might prompt higher bids."
Jason Lim, managing director of Eurokars Auto, an authorized dealer for BMW, added, "The three-week interval for the next round of bidding adds pressure on COE premiums. It’s a delicate balance of supply and demand, and many dealers are looking at the potential outcomes of future biddings."
Ng Choon Wee, commercial director of Komoco Motors representing Hyundai in Singapore, expressed similar sentiments, noting that both Category A and B received a near equal number of bids compared to previous rounds. He stated, "The increase in COE premiums can be attributed to competitive bidding, as the next round offers more time for dealers to gather orders. With the anticipation of climbing premiums, bidders might feel pressured to place higher bids now."
Corinne Chua, managing director of Volvo Car Singapore, observed that the oversubscription rate from the last round was at an impressive 58 percent, coupled with March traditionally being a peak time for dealers. She asserted, "High bidding might be a trend this month as everyone speculates on future premium increases. Ultimately, we anticipate a slowdown in showroom traffic alongside this uptick in prices, potentially consolidating around these premium levels."
As a breakdown of the leading categories shows, the second COE bidding exercise yielded the following results:
Looking ahead, the next round of COE bidding is scheduled for April 7, 2025, at 12 p.m., with results expected on April 9, at 4 p.m. The uncertainty around these upcoming bids further fuels anticipation among dealers and buyers alike.
For those considering upgrading their vehicles amid rising COE prices, Motorist offers a comprehensive online valuation service aimed at helping sellers achieve the best returns. Concerns over whether to renew COEs or scrap vehicles are addressed through free consultations provided by the platform. The fluctuating market dynamics underline the importance of staying informed about COE trends and future opportunities.
With the evolving landscape of car ownership in Singapore, it remains clear that these COE increases signal a pivotal moment for both consumers and dealers. As regulatory impacts continue to shape demands and prices, industry players and motorists alike will have to adapt swiftly to new developments.
