Singapore COE Premiums Fall on July 22: Category A Drops to S$126,000

Singapore’s Certificate of Entitlement (COE) premiums fell in the July 22 bidding exercise, with Category A dropping S$3,000 to S$126,000 after hitting a record S$129,000 just two weeks earlier. Category B premiums slid to S$129,890, while commercial vehicle COEs fell to S$93,889. The pullback signals cooling demand from buyers after sustained price peaks, though industry observers expect premiums to remain near current highs given strong overall demand.

Category A sees largest decline after record high

Category A COE premiums fell 2.33 per cent to S$126,000 on July 22, down S$3,000 from the S$129,000 record set on July 8. These certificates cover smaller cars of 1,600cc and below with engine output not exceeding 130 brake horsepower, as well as electric vehicles under 110kW. The S$3,000 drop was the largest dollar decrease across all five categories in this bidding round. A total of 4,455 bids were received against a quota of 3,242 COEs available.

Other categories show mixed results

Category B premiums, used for larger and more powerful cars, fell 0.76 per cent to S$129,890 from S$130,889. Commercial vehicle COEs (Category C) declined 1.17 per cent to S$93,889 from S$95,000. Motorcycle premiums (Category D) rose marginally by S$1 to S$10,202, marking the second consecutive exercise where motorcycle COEs breached the five-digit mark. Open category certificates (Category E) rose 0.13 per cent to S$129,971 from S$129,801.

Demand cooling after buyer sticker shock

Industry experts attribute the price corrections to cooling demand following the previous round’s record highs. Corinne Chua, managing director of Volvo at motor distributor Wearnes Automotive, attributed the fall in Category A COE prices to reduced buyer interest. Zafar Momin, adjunct professor at the National University of Singapore’s Business School, described the price corrections as merely a temporary cooling from very high premiums. Everyday car buyers likely experienced sticker shock during the previous tender, he added.

Premiums remain elevated despite pullback

Despite the July 22 decline, all five COE categories remain above their levels from the June 17 bidding exercise. Anthony Teo, managing director of automotive group Motorway, said the pullback represents a small correction but noted that demand for cars remains strong. Industry players expect that while more COE supply could be released in coming weeks, major future drops are unlikely as underlying demand continues to support prices near current levels.

Final Thoughts

The July 22 COE correction offers temporary relief for car buyers after record premiums, but premiums remain elevated. With strong underlying demand and limited supply, buyers should expect prices to stabilize near current levels rather than fall significantly.

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