Singapore COE Prices Fall to $131,890 on September 23 After Record High

Singapore’s Certificate of Entitlement premiums fell across all vehicle categories on September 23, with Category A dropping 0.8% to SGD 131,890 after hitting an all-time high of SGD 133,009 just two weeks earlier. The correction reflects buyer hesitation at elevated price levels, though premiums remain historically high. The Land Transport Authority is reviewing COE categorisation to better differentiate mass-market and higher-end vehicles.

All categories post declines after record-high bidding

Every COE category saw price drops in the September 23 tender. Category B fell 1.5% to SGD 133,000 from SGD 135,001. The motorcycle category (D) posted the sharpest decline, dropping 2.8% or SGD 355 to SGD 12,201. Category E (open category) fell 0.6% to SGD 137,000, while commercial vehicles (Category C) declined 1.03% to SGD 92,144. Despite these decreases, all three car categories remain above SGD 130,000.

Market softened after record September 9 bidding

The Land Transport Authority conducted the previous bidding exercise over three weeks instead of the usual two, which contributed to record premiums on September 9. Category A hit SGD 133,009 and Category B reached its highest level of 2026 at SGD 135,001. Car dealers reported fewer sales and less customer interest over the past two weeks as buyers backed away from the elevated prices. Jason Lim, managing director of Mazda Singapore, said demand remains strong despite the correction.

Demand gauge shows pullback in Category A

Unsuccessful bids, a key measure of demand, dropped to 26% in Category A from 43% in the previous round, indicating fewer buyers competed for available certificates. Corinne Chua, managing director of Volvo at Wearnes Automotive, attributed the slowdown directly to the record-high result for Category A in the prior exercise. The LTA noted that premiums remain elevated overall, with Category A and Category B prices hovering in similar regions.

LTA review aims to reshape vehicle categorisation

The Land Transport Authority is reviewing COE categorisation to differentiate between mass-market and higher-end cars more effectively. The review will incorporate feedback from motorists, dealers, car manufacturers, and academics, with completion expected by the end of 2026. Motor dealers cautioned that COE prices are unlikely to continue declining for the remaining exercises in 2026, citing potential rush demand ahead of EV incentive scheme changes on January 1, 2027.

Final Thoughts

COE premiums fell across the board on September 23, but remain near record highs with Category A and B both above SGD 130,000. Buyers should expect continued volatility as the LTA reviews categorisation and new EV incentive schemes approach in January 2027.

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