COE Prices Surge Across the Board!

SINGAPORE—In a startling move during the latest bidding exercise on April 9, Certificate of Entitlement (COE) premiums have soared, particularly impacting larger vehicles. The prices for larger cars in Category B have crossed the monumental threshold of S$117,000, hitting S$117,899, a slight bump from S$116,890 in the previous round.

Meanwhile, smaller cars in Category A—those with engines 1,600cc and under and horsepower not exceeding 130bhp—also saw an increase, with premiums rising to S$97,724, up from S$94,502.

In contrast, the market for commercial vehicles has seen a decrease, with premiums dropping to S$68,782 from S$70,089. Likewise, motorcycle premiums climbed to S$9,889, a rise from S$9,511.

Open category COEs, flexible enough to be utilized for any vehicle type and primarily used for large cars, also reflected the upward trend, rising to S$117,002 from S$116,991.

Overwhelming Demand Amid Limited Supply!

The recent bidding saw an impressive 4,734 submissions, though only 2,882 COEs were available for allocation. This overwhelming demand against a backdrop of limited supply has led families to reconsider car ownership.

Recent reports indicate that vehicle rental firms are witnessing a surge in business, with a 30% increase during this year's Hari Raya compared to last year. Many families are opting for rental services in light of soaring ownership costs.

New Regulations Aim to Stabilize the Market!

In response to these surging prices, the Land Transport Authority has rolled out measures intended to stabilize the number of private-hire cars. A new requirement mandates that all newly registered, converted, or transferred private-hire vehicles must disclose their complete history.

As the COE landscape continues to evolve, vehicle owners and potential buyers are undoubtedly feeling the financial strain, making it crucial to stay informed on the latest market trends.