COE prices close mostly higher in latest bidding exercise
Vehicles on a highway in Singapore. (File photo: CNA/Jeremy Long)
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SINGAPORE: Certificate of Entitlement (COE) premiums closed mostly higher in the latest bidding exercise on Wednesday (Dec 18).
For smaller cars in Category A, premiums closed at S$96,000 (US$71,000), up from S$94,000 in the last exercise.
The biggest increase was for larger cars in Category B, with premiums rising by nearly S$6,000 to S$109,000.
Open category COEs, which are mainly used for large cars although they can be used for any vehicle type, rose by nearly S$5,000 - from S$104,001 to S$108,992.
Motorcycle premiums closed at S$8,381, up from S$7,878 in the last exercise.
COEs for commercial vehicles, which include goods vehicles and buses, fell to S$69,890 from S$70,289 in the previous bidding exercise.
A total of 3,864 bids were received, with a quota of 2,667 COEs available.
COE prices have remained volatile since hitting record highs in October 2023.
Some market watchers told CNA earlier this year that they expect COE premiums to rise in the short to medium term, driven by higher demand for electric vehicles - especially Chinese brands.
To capture more of the market, brands such as BYD have been introducing more Category A cars, or those 1,600cc and below with horsepower not exceeding 130bhp.
The government announced in October that it would progressively inject up to 20,000 additional COEs across all vehicle categories from February 2025 over the next few years.
The Land Transport Authority (LTA) explained that the extra COEs were possible because of the upcoming implementation of the ERP 2.0 system, which the authority said would help manage traffic congestion better.
Further injections of COEs could be considered if distance-based charging is implemented in the future, Transport Minister Chee Hong Tat said in parliament on Nov 12.
