COE Prices Hit New Highs Across All Categories in Latest Tender

SINGAPORE – Certificate of Entitlement (COE) prices surged across all categories during the latest tender exercise on Sept 4, 2024, with the premium for smaller, less powerful cars reaching $96,490, marking the highest so far in 2024. This represents a 2.8% increase from the previous price of $93,900 on Aug 21.

For Category A COEs, covering smaller cars and electric vehicles (EVs), the new premium of $96,490 surpassed the earlier peak of $94,289 recorded on Aug 7.

In the Category B segment, for larger and more powerful vehicles, including EVs, the premium rose by 0.4% to $106,300 from $105,889. The Open category (Category E), which can be used for any vehicle type except motorcycles, climbed 0.8% to $106,901.

Motorcycle COE premiums (Category D) saw the largest jump, increasing by 5.3% to $9,801, while commercial vehicle COEs (Category C) rose 2.2% to $74,001, continuing a five-round streak of price hikes.

Motor dealers attributed the rising premiums to recent car launches, promotional activities by brands like BMW and Mercedes-Benz, and the upcoming Car Expo in October. Additionally, the longer-than-usual gap between the next COE tender on Sept 18 and the one on Oct 9 is expected to contribute to rising bids as dealers secure certificates in advance to fulfill orders.

Dealers also pointed to the strong sales of Chinese EV brand BYD, which registered 520 cars in July, largely in Category A, as a key factor driving demand.

With major models from brands like Toyota and Honda launching this year, COE prices are expected to remain high in the coming rounds, particularly leading up to the Car Expo.