Singapore’s COE Renewal Surge: A Record High in Q1 2025
In the first quarter of 2025, Singapore witnessed a significant surge in the renewal of Certificates of Entitlement (COE), with 2,834 vehicles completing the renewal process. This figure represents more than double the number from the same period in 2024 and marks the highest quarterly renewal count since Q1 2020, when 5,558 vehicles were renewed.
Trends in COE Renewals
- Historical Context: The trend of COE renewals has seen fluctuations over the past few years. In 2021, 2,730 vehicles were renewed, which dropped to 1,825 in 2022 and further declined to 1,129 in 2023. A slight recovery was noted in 2024, with 1,378 renewals.
- Economic Factors: Experts attribute the recent spike in renewals to economic uncertainties, prompting many car owners to delay purchasing new vehicles. Additionally, some owners are waiting to see how electric vehicle (EV) technology develops before replacing their gasoline cars.
- COE Validity: The COE is initially valid for ten years, after which owners can choose to renew it for either five or ten years. The current trend shows a notable increase in renewals as many vehicles approach the end of their COE validity.
Renewal Preferences by Vehicle Category
Data from the Land Transport Authority (LTA) indicates that in Q1 2025, 67% of small car (Category A) renewals opted for a five-year term, while 74.4% of large car (Category B) renewals chose a ten-year term.
Cost Considerations and Market Dynamics
The cost of renewing a COE is based on the average price of COEs over the previous three months. The fee for a five-year renewal is half that of a ten-year renewal. Recent data shows that the cost of renewing a small car’s COE for ten years dropped to $92,525 in March 2025, the lowest since September 2024, due to a decrease in COE prices.
As renewal costs decrease, the number of renewals tends to increase. For example, in March 2025, 598 small car owners chose to renew their COE, reflecting a rise in interest compared to previous months.
Conclusion
The surge in COE renewals in Singapore during the first quarter of 2025 reflects a combination of economic caution, changing consumer preferences, and the evolving landscape of vehicle technology. As car owners navigate the complexities of vehicle ownership and environmental considerations, the trend of COE renewals will likely continue to shape the automotive landscape in Singapore.Bookmark messageCopy messageExport