🚘 COE Prices Climb Across All Categories in May 2025 Bidding Exercise
As of May 7, 2025, Certificate of Entitlement (COE) premiums in Singapore have increased across all vehicle categories in the latest bidding exercise. This upward trend reflects strong demand in the vehicle market, influenced by factors such as economic recovery and limited COE supply.
💡 What Is COE and Why Does It Matter?
The Certificate of Entitlement (COE) is a unique system in Singapore that controls the number of vehicles on the road. Introduced in 1990, it ensures sustainable transport growth by requiring individuals to bid for a COE before owning a vehicle. The price of a COE is determined by demand and changes every two weeks in a bidding exercise.
🧾 How Does the COE Bidding Process Work?
COE bidding happens twice a month, where participants submit their bids online. The lowest successful bid in each category becomes the COE price for that round. Only a limited number of COEs are available, and this quota directly impacts the premium.
📊 COE Premiums by Category
Category A (Cars ≤ 1,600cc & 130bhp):
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Premium: S$103,009
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Change: Up from S$99,500 in the previous bidding exercise
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Note: First time crossing the S$100,000 mark since October 2024
Category B (Cars > 1,600cc or 130bhp):
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Premium: S$121,501
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Trend: Highest level in over a year
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Insight: Driven by strong demand for larger vehicles and fleet purchases
Category C (Goods Vehicles & Buses):
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Premium: S$67,891
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Trend: Slight decrease from previous bidding
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Observation: Reflects cautious business spending
Category D (Motorcycles):
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Premium: S$9,001
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Change: Increase of S$620 from the previous bidding
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Note: Steady demand from delivery riders and private owners
Category E (Open Category):
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Premium: S$123,000
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Trend: Continues to be among the highest across categories
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Usage: Typically used for larger vehicles
📈 Factors Influencing COE Prices
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Increased Demand: Post-General Election 2025, there's been a surge in car ownership interest, contributing to higher COE bids.
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Limited Supply: Despite a 6.4% increase in COE quotas for May to July 2025, demand continues to outpace supply.
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Economic Recovery: As Singapore's economy rebounds, more individuals are seeking personal vehicles, further driving up COE prices.
