THE Certificate of Entitlement (COE) premium for the mainstream car category, Category A, has increased by 4.6 per cent or S$4,111 to S$94,000 in December’s first round of COE bidding.
The only other category to go up in price was the commercial vehicle category, while premiums for the big car, open and motorcycle categories all dipped.
The Category A COE applies to mainstream cars with engines of up to 1,600 cubic centimetres (cc) in capacity or that have less than 97 kilowatts (kW) of power, or for electric vehicles with less than 110 kW.
The category’s increase comes after a drop of S$10,000 in November’s second round of bidding, when the premium crashed to S$89,889 from S$99,889, in what was its largest decrease of 2024.
Category C, used to register commercial vehicles and buses, increased by 1.9 per cent or S$1,289 to S$70,289.
The large-car category, B, dropped by 2 per cent or S$2,071 to S$103,010. Category B is used to register larger or more powerful cars with engines of more than 1,600 cc in capacity or that have more than 97 kW of power, or for electric vehicles with more than 110 kW. Category E, the open category which can be used to register any type of motor vehicle except for motorcycles, decreased by 3.3 per cent or S$3,500 to S$104,001.
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Prices for Category D, used for motorcycles, decreased the most of any category this round: 9.1 per cent, or S$791, to S$7,878.
No violent rebound
Industry observers said that the rise in Category A was no surprise, as COE premiums often react to large shifts by taking the opposite tack in the rounds that follow, and November’s drop was especially notable.
Jason Lim, the managing director of Eurokars Auto, an authorised dealer for BMW, said: “The S$10,000 drop (in November’s second round)… we hardly see that sort of decrease in today’s COE market. It was a very big drop, and very significant.”
In the weeks after, car dealers saw an increase in the number of walk-in customers and sales, he added, so the rise in the premium this round was “no surprise as some buyers have decided to come back in”.
He also said that his dealership had healthy sales of BMW’s Category A models, including the X1 sport utility vehicle and 2 Series Active Tourer multi-purpose vehicle.
Nicholas Wong, the chief executive officer of authorised Honda dealer Kah Motor, said that the Category A increase was a typical, knee-jerk reaction that is common in the COE market, especially when there is a relatively low supply of certificates, like now. He said that with the recent drops in COE premiums for categories A and B, bidding is now generally at a lower price level, which could have helped moderate the price increase.
“Everyone still wants to buy a car… (the premium) didn’t rebound by S$10,000 back to its original price, so that is good,” he added.
Category A’s results also contrast with those of Category B, which dealers attributed to differing buyer behaviour.
Category B is typically used to register more expensive or luxury segment cars, the buyers of which are less price-sensitive.
Given that the level of bids received stayed the same, Wong noted that Category B demand has remained strong despite the slight fall in price, as more affluent buyers do not feel as much urgency to replace their cars.
