Cat A premium rises to $132,004 in first tender after COE review announced; Cat B climbs to $131,901

SINGAPORE - Certificates of entitlement (COE) prices edged upwards at the Oct 21 tender exercise, with the price of Category A, meant for smaller, less powerful cars and electric vehicles (EVs), rising 1.5% from $130,001 to $132,004.

The price of Category B – used to register larger, more powerful cars and EVs – went up 1.4%, from $130,100 to $131,901.

The rise in premiums for the two categories in the latest bidding exercise – the first one after the authorities announced a review of the COE system – comes after a price dip in the last two rounds.

On Oct 8, the Land Transport Authority said it was seeking public feedback on its proposal to revise the COE system for cars.

The proposed changes will include a move to merge categories A and B into a single passenger car category.

The price that successful bidders pay for a certificate will be based on the cost of the car – a higher-value car will incur a surcharge on the COE value while a lower-value one will get a rebate.

At the Oct 21 bidding exercise, the open category COE or Category E premium was down 0.9% from $137,000 to $135,790.

Open category certificates are transferrable and can be used to register any vehicle type except motorcycles. Motor traders often secure them for the flexibility to register car without waiting for the next tender exercise.

The price of commercial vehicle certificates or Category C inched up 0.3% from $91,889 to $92,200.

Motorcycle COEs closed at $10,778 – 2.1% lower than the $11,012 at the previous tender exercise.

Earlier in the day, motor dealers The Straits Times spoke to said sales have slowed down in the past two weeks.

The exceptions were the Chinese EV brand dealers, who said buyers are still rushing to commit before the EV incentives expire on Dec 31. In 2027, the tax rebate for new EVs will be reduced by $10,000.

After the latest tender exercise closed, an LTA spokesperson said: “COE prices remain elevated across most categories in the latest bidding exercise.

“We note that there is an upcoming car exhibition which may lead to elevated demand and COE prices during this period. We urge car buyers and dealers to be prudent in bidding for COEs.”

The Car Expo, organised by SPH Media, which publishes The Straits Times, will be held at the Singapore Expo from Oct 24 to Oct 25.

LTA also touched on the COE review exercise, and said it will “carefully consider the feedback received before deciding on any changes to the COE categorisation framework”.

The consultation closes on Nov 2, 1159pm. Those who would like to contribute can do so at https://go.gov.sg/coe-pcd-feedback.

Lee Nian Tjoe is senior transport correspondent at The Straits Times, where he also oversees the Motoring section.