Motorists looking to buy a car may have to dig deeper into their pockets after Category A Certificate of Entitlement (COE) premiums climbed to their highest level in eight months.
Following the latest bidding exercise, the Land Transport Authority (LTA) urged both vehicle buyers and dealers to exercise caution and avoid aggressive bidding amid persistently high COE prices.
The latest figures show that demand for vehicle ownership in Singapore remains strong despite elevated premiums across several categories.
Category A Premiums Rise Above S$126,000
In the first COE bidding exercise for June, Category A premiums, which cover smaller and less powerful cars, closed at S$126,009.
The figure represents an increase of 1.43 per cent from the previous exercise, where premiums stood at S$124,229.
It is also the highest Category A premium recorded since October 2025, when prices reached a record S$128,105.
While Category A saw an increase, Category B premiums experienced a slight decline. Premiums for larger and more powerful vehicles fell by 1.94 per cent to S$126,989.
The difference between Category A and Category B premiums now stands at less than S$1,000, highlighting how closely both categories are trading.
Commercial Vehicle And Motorcycle COEs Also Increase
Category C premiums, which are used for commercial vehicles such as goods vehicles and buses, edged up by 1.93 per cent to S$94,000.
Motorcycle owners also faced higher costs, with Category D premiums rising by 3.21 per cent to S$10,000.
Meanwhile, Open Category premiums eased slightly by 0.77 per cent to close at S$129,000.
The latest exercise saw a quota of 3,215 COEs available, but demand remained significantly higher, with a total of 4,920 bids submitted.
The strong competition for limited quotas continues to put upward pressure on premiums across multiple categories.
LTA Says Demand Remains Strong
According to LTA, the current COE price levels reflect sustained market demand.
The authority noted that recent vehicle sales events, including the Car Expo held in May, may have contributed to the strong bidding activity seen in the latest exercise.
LTA also pointed to growing adoption of electric commercial vehicles as another factor influencing demand. Registrations of electric heavy goods vehicles and electric buses have reportedly increased since the start of the year.
This trend has been supported by the Heavy Vehicle Zero Emissions Scheme, which encourages businesses to switch to cleaner transport options.
Next COE Exercise Scheduled For Mid-June
Motorists will not have to wait long for the next opportunity to bid.
The second COE exercise for June is scheduled to take place from June 15 to June 17.
There will then be a three-week gap before the first bidding exercise in July, creating a slightly longer waiting period than usual.
LTA is expected to announce the COE quota allocation for the August to October period in July, a development that many prospective car buyers and dealers will be watching closely.
For now, the authority continues to advise buyers to remain prudent and carefully consider their bids as competition for vehicle ownership remains intense in Singapore’s tightly controlled automotive market.