In the latest Certificate of Entitlement (COE) bidding exercise held on March 20, premiums were generally observed to have closed higher compared to the previous exercise on March 6. The new premiums for each category are as follows:
Category A (cars up to 1,600cc and 130bhp, and electric vehicles up to 110kW) saw a 2.9 per cent increase in premium, with a new price of S$85,489. This category has a quota of 936.
Category B (cars above 1,600cc and 130bhp, and electric vehicles above 110kW) experienced a minimal increase of S$1, resulting in a premium of S$96,011. The quota for this category is 656.
Category C (goods vehicles and buses) saw a significant decrease in premium, with a 7.8 per cent reduction to $70,112. This category has a quota of 202.
Category D (motorcycles) saw a notable increase in premium, with the price rising by $289 to $9,689. The quota for this category stands at 521.
Lastly, Category E (any vehicle except motorcycles) saw a premium increase of $846, resulting in a new price of $95,856. This category has a quota of 157.
In total, there were 2,472 COEs available across all categories. All categories were oversubscribed, indicating a high demand for these vehicle permits.
About COE
Singapore’s car market is known for being one of the most expensive in the world, with the high COE premiums playing a significant role in this reputation. The COE system is a government-implemented approach to regulate the number of cars on the road, as well as to address the country’s limited land space.
In addition to the COE, car buyers in Singapore must pay for additional costs such as the car’s open market value (OMV), goods and services tax (GST), registration fee, and other additional expenses like insurance and road tax. The high costs of car ownership have contributed to the adoption of car-sharing and ride-hailing services, as well as encouraged more commuters to use public transportation.
For example, a car in Category A (cars up to 1,600cc and 130bhp, and electric vehicles up to 110kW) with an OMV of S$16,000 may cost around S$120,000 in total, accounting for the COE premium. This is significantly higher compared to other countries like the United States or Japan, where the same car may cost only a fraction of that price.
Although the high costs associated with car ownership can be a drawback for some, Singapore’s efficient public transportation system, which includes a extensive network of buses, trains, and taxis, serves as a viable and cost-effective alternative for daily commuting.