Singapore’s Certificate of Entitlement (COE) premiums continued climbing during the second bidding exercise of May 2026, with larger car categories approaching the psychologically significant S$130,000 mark once again.
According to the latest tender results, Category B — which covers larger and more powerful cars above 1,600cc or 130bhp — closed at S$129,501, rising by S$3,265 from the previous exercise. The category saw strong competition, with 1,469 bids chasing just 869 available quotas.
Meanwhile, Category A COEs, which apply to smaller and less powerful cars, also increased to S$124,229 after climbing S$561. Demand remained intense, with 2,283 bids submitted for only 1,239 available certificates.
Open Category Hits S$130k
The Open Category (Category E), which can typically be used for any vehicle type but is often utilised for bigger cars, reached exactly S$130,000 in the latest bidding round. This represented an increase of S$2,300 compared to the previous exercise.
Industry watchers have noted that Open Category premiums usually mirror or exceed Category B prices due to demand from luxury and premium vehicle buyers. The latest figures suggest continued pressure in Singapore’s car market despite already elevated vehicle ownership costs.
Commercial vehicle COEs under Category C also rose sharply by S$4,744 to S$92,223, indicating sustained business demand for vans, lorries and buses.
Strong Demand Continues Across Singapore Car Market
The latest results highlight how demand for vehicles in Singapore remains resilient despite record-high ownership costs and rising living expenses.
Many buyers may be rushing to secure vehicles amid expectations that COE prices could remain elevated throughout 2026 due to limited supply and strong replacement demand. Quotas remain relatively tight compared to the large number of bids submitted in each exercise.
The disparity between available quotas and bids was especially visible in Category A, where applications nearly doubled the number of certificates available.
Car Buyers Face Rising Financing Costs
The continued rise in COE premiums means prospective car owners in Singapore are facing significantly higher upfront vehicle costs. For many popular family cars, the COE alone now exceeds the price of the vehicle itself before taxes and dealer margins are added.
This has also led to growing interest in car loans, refinancing packages, vehicle insurance comparisons and long-term car leasing options among Singapore consumers trying to manage rising transport expenses.
With the next COE tender scheduled for Jun. 4, many in the automotive industry will be watching closely to see whether premiums continue climbing or finally stabilise after months of elevated bidding activity.