COE premiums for smaller cars hit new record high of S$107,889 in September 2025 exercise
Premiums for smaller cars have surged to a new record high of S$107,889 in the latest Certificate of Entitlement (COE) bidding exercise on 3 September 2025, surpassing the previous peak set in October 2023.
- Category A COE premiums hit a record S$107,889, breaking the October 2023 high of S$106,000.
- Category B and Open Category premiums also rose, while commercial vehicle premiums dipped slightly.
- Demand for vehicles remains strong despite rising ownership costs and a larger COE quota.
SINGAPORE — Premiums for smaller cars in Singapore have reached a new all-time high, closing at S$107,889 (US$83,715) in the Certificate of Entitlement (COE) bidding exercise on 3 September 2025.
According to official results, Category A COEs — covering cars up to 1,600cc and with horsepower not exceeding 130bhp — rose from S$104,524 in the previous exercise to the new record high, surpassing the earlier peak of S$106,000 recorded in October 2023.
Category breakdown
Premiums for Category B, which applies to larger and more powerful cars, increased to S$127,501 from S$124,400 in the last round.
Open Category (Category E) COEs, which can be used for any vehicle type but are most often applied to larger cars, also rose to S$127,901, up from S$125,001.
Commercial vehicle premiums, however, recorded a modest dip, falling to S$71,556 from S$72,190.
For motorcycles, premiums climbed to S$9,101 compared with S$8,809 in the previous exercise.
In total, 4,553 bids were submitted for 3,144 available COEs.
COE supply and market context
This was the third bidding exercise under the August–October 2025 quota period, with 18,701 COEs allocated — a 22 per cent increase from the 15,283 available during the same period in 2024.
Despite the larger supply, COE prices have continued to climb, reflecting sustained demand from private buyers and fleet operators.
Broader market trends
Introduced in 1990, the COE system regulates vehicle ownership by requiring successful bidders to obtain a certificate before registering a new vehicle. Quotas are tied to the number of deregistered vehicles, creating cyclical fluctuations in supply.
In 2024, COE premiums had stabilised after a year of sharp increases but began rising again in mid-2025. The latest surge suggests continued strong demand — particularly among buyers seeking electric vehicles (EVs) and luxury models — even as ownership costs remain at record highs.
Analysts say the combination of limited supply of desirable models, higher costs of car financing, and strong household liquidity continues to fuel bidding competition.
