The latest Certificate of Entitlement (COE) bidding exercise closed this Wednesday with a mixed bag of results, ending a month-long trend of across-the-board declines for smaller cars.
Cat A Ends Losing Streak After falling for four consecutive rounds, premiums for Category A—which includes cars up to 1,600cc and 130bhp, as well as electric vehicles (EVs) with an output of up to 110kW—climbed by 3.9%. The price settled at $109,501, up from $105,390 in the previous exercise. This rebound suggests a renewed demand from entry-level car buyers after several weeks of cooling prices.
Category B and E See Significant Drops In contrast, the premium for Category B (larger and more powerful cars) saw a significant correction. Prices dipped by 7.1%, falling from $123,900 to $115,102.
The Open Category (Category E), which can be used for any vehicle type but is almost exclusively used for large cars, followed a similar downward trajectory. It fell by approximately 7.2% to end at $115,101.
Other Categories
- Category C (Goods vehicles and buses): Increased to $73,501, up from $70,001.
- Category D (Motorcycles): Rose slightly by $399 to finish at $9,000.
The Bigger Picture: Managing Singapore’s Roads These fluctuations remain a core part of Singapore’s Vehicle Quota System (VQS). As outlined by the Ministry of Transport (MOT), the VQS is a critical pillar of the nation’s “car-lite” strategy. By requiring a COE for vehicle ownership, the government manages the growth of the vehicle population to prevent gridlock on Singapore’s limited land space.
Under current MOT policies, the growth rate for cars and motorcycles is maintained at zero, meaning the number of COEs available for bidding is largely determined by the number of vehicles deregistered in the preceding quarter.
With Cat A prices back on the rise and Cat B seeing a correction, market observers will be watching closely to see if this represents a stabilization of the market or a temporary fluctuation as the year draws to a close.
