Certificate of Entitlement (COE) premiums climbed once again in the first bidding exercise of October, with prices for smaller cars and electric vehicles (EVs) surging by 7.6%.
For the 8 Oct exercise, the premium for a Category A COE — which covers smaller cars and EVs — reached a new peak of S$128,105, up 7.6% from S$119,003 in the previous tender on 17 Sept.
This marks not only the largest increase in this round of bidding but also the third consecutive record high for Category A premiums.
The price for larger and more powerful cars and EVs under Category B also rose by 3% to S$141,000, the highest level since 2023.
Meanwhile, Open Category COE premiums, typically used for larger cars, dipped slightly to S$140,009.
Following the release of the latest COE results, the Land Transport Authority (LTA) issued a statement outlining the factors behind the surge in premiums.
According to the LTA, the higher COE prices were partly due to this being a three-week bidding exercise, instead of the usual two-week interval between tenders.
The car roadshow held at the end of September also contributed to stronger demand.
“More broadly, the lower costs of EVs, especially those from China, as well as the reduction of incentives for cleaner energy vehicles, have also added to demand,” an LTA spokesperson said, adding that car buyers should be “prudent” when bidding for COEs.
Authorities recently announced adjustments to Singapore’s electric vehicle (EV) schemes as part of the nation’s goal to achieve a fully cleaner-energy vehicle fleet by 2040.
On 8 Sept, the LTA and National Environment Agency (NEA) said incentives for EVs will be scaled down from 2026, though other initiatives encouraging the adoption of lower-emission vehicles will continue.
Also read: SM Lee & Jamus Lim have Facebook debate on COE, disagree on how to best meet people’s needs
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Featured image adapted from MS News, for illustration purposes only.