COE prices surge in Singapore vehicle market

COE prices in Singapore have increased across all categories following the latest tender on March 19, 2025. The premium for a Category B certificate of entitlement (COE) reached $116,890, which is a 3.4 percent increase from the previous tender's $113,000. This category is for larger and more powerful cars, including electric vehicles. The premium for Category A COEs, meant for smaller cars, went up 1.9 percent, reaching $94,502. This is the highest price for this category in 2025. In the Open category (Category E), which can be used for various vehicle types, the premium rose to $116,991, marking a 3.6 percent increase from $112,901 two weeks ago. A COE is essential for vehicle registration in Singapore, and the rise in COE prices is likely to lead to higher overall car prices. The commercial vehicle (Category C) COE premium increased by 4.6 percent to $70,089, while the motorcycle (Category D) COE rose 3.4 percent to $9,511. Industry experts suggest that several factors contributed to the rise in COE prices. A longer gap between tenders allowed dealers more time to secure orders, which caused bidders to anticipate even higher prices in upcoming tenders. Additionally, recent sales promotions from various car brands may have boosted demand for COEs. Some dealers noted an increase in showroom traffic, particularly as buyers awaited the 20,000 additional COEs being released by the Land Transport Authority. However, following this latest tender, dealers expect car sales to slow down due to the higher COE premiums, which will result in elevated car prices. For instance, BMW announced price increases for its cars, reflecting these changes.