Jobaaj Stories
COE Prices Surge in Singapore: May 2025 Update
Singapore's Certificate of Entitlement (COE) premiums skyrocketed across all categories in the May 7, 2025, bidding exercise, marking a significant increase in the cost of car ownership. Category B, for larger vehicles, reached a staggering S$121,501 – the highest in over a year. This surge reflects a robust vehicle market driven by several key factors.
Understanding Singapore's COE System
The COE system, introduced in 1990, limits the number of vehicles on Singapore's roads, ensuring sustainable transport growth. Individuals must bid for a COE before purchasing a car. The price fluctuates every two weeks based on supply and demand, making it a crucial factor influencing car prices.
May 2025 COE Premium Breakdown
- Category A (Cars ≤ 1,600cc & 130bhp): S$103,009 (up from S$99,500)
- Category B (Cars > 1,600cc or 130bhp): S$121,501 (highest in over a year)
- Category C (Goods Vehicles & Buses): S$67,891 (slight decrease)
- Category D (Motorcycles): S$9,001 (increase)
- Category E (Open Category): S$123,000 (remains high)
Factors Driving the Increase
The rise in COE prices is attributed to several factors. Strong economic recovery has boosted demand, while the limited COE supply further exacerbates the situation. The recent Car Expo likely contributed significantly to the surge in bids, especially in Categories A and B. Increased demand for larger vehicles and fleet purchases fueled the Category B increase, while the steady demand for motorcycles from delivery services and private owners influenced Category D.
Expert Opinions
Motor dealers attribute the increase to a combination of factors, including strong demand fueled by the recent Car Expo and the introduction of new electric vehicle models in Category A. The limited supply of COEs and pent-up demand after previous bidding exercises also contributed to the price hike.
Conclusion
The significant increase in COE premiums across all categories in May 2025 highlights the dynamic nature of Singapore's vehicle market. Understanding these price fluctuations is crucial for anyone considering purchasing a vehicle in Singapore. Stay updated on the latest COE trends to make informed decisions.
