COE Premiums Tumble in First February Bidding, Cat B Sees Biggest Drop

The latest Certificate of Entitlement (COE) bidding exercise in Singapore has brought encouraging news for prospective car buyers, with premiums falling across all categories. Notably, Category B—which covers larger and more powerful vehicles including premium electric models—recorded the steepest decline, potentially making it more affordable for buyers to upgrade just in time for the Chinese New Year.

Cooling Demand Across Categories

The Land Transport Authority’s recent COE results indicate a clear easing in demand. Category A, which includes smaller cars up to 1600cc and 130bhp as well as electric vehicles (EVs) up to 110kW, closed at $106,320, marking a decrease of $3,181 from the previous exercise. Category B, comprising cars above 1600cc or 130bhp and EVs above 110kW, saw the most significant drop, tumbling by $10,744 to $110,890.

Other categories also experienced declines: goods vehicles and buses under Category C eased to $74,801, while the Open Category (Category E) ended at $116,000, down by $4,891. Analysts attribute this broad-based reduction to a post-Motorshow slowdown and cautious buyer sentiment ahead of the festive season. Dealers are reportedly offering more competitive pricing to attract buyers, contributing to the softer premium landscape. Interestingly, despite a high rate of unsuccessful bids in Category A, the premium still slipped, suggesting a general retreat in bidding intensity.

Implications for Buyers

This dip in COE premiums offers Singaporean car buyers a welcome respite from the relentless price increases seen in recent months. The sharp fall in Category B premiums is particularly noteworthy as it narrows the price gap with Category A, potentially encouraging more consumers to consider larger or more powerful internal combustion engine (ICE) vehicles and premium electric cars. Such a shift could stimulate demand for family-sized vehicles and higher-end EV models that were previously out of reach for many.

However, this period of relief may be temporary. Recent changes to the Preferential Additional Registration Fee (PARF) rebate framework are expected to influence COE pricing dynamics in the coming months. Should demand rebound, premiums could quickly rise again in the next bidding cycle. For now, buyers prepared to act promptly can capitalise on this rare opportunity where the cost of car ownership has eased, albeit marginally.