[SINGAPORE] In the first round of Certificates of Entitlement (COEs) for December, the premium for large cars was down 4.6 per cent or S$5,990 at S$123,900, as most other categories also posted decreases.
Industry observers said this was a result of a quieter car market, typical of the year-end period, even as some dealers continue to push for sales.
Category B is for bigger, more powerful cars with engine capacities of more than 1,600 cubic centimetres (cc) or with more than 97 kilowatts (kW) of power, or for electric vehicles (EVs), more than 110 kW of power.
This follows the category’s spike of 12.9 per cent to S$129,890 in the previous round of bidding that caught industry observers off guard.
Category A for mainstream cars declined by 3.3 per cent or S$3,587 to S$105,413, as the category continued to back away from an all-time high of S$128,105 set in early October.
The Category A COE applies to mainstream cars that have engines of up to 1,600 cc in capacity or with up to 97 kW of power, or for EVs with up to 110 kW of power.
Category D, used for motorcycles, decreased 5 per cent, or S$440, to S$8,289.
Category E, the open category which can be used to register any type of motor vehicle except motorcycles, was down 1.6 per cent or S$2,001 at S$123,000.
The commercial vehicle category, C, posted the sole rise in this round, although it was almost unchanged: It increased 0.1 per cent or S$112 to S$76,501.
Industry observers said that the recent high COE prices and the year-end holiday period contributed to the lull in this first round of bidding in December – and the cooling off of premiums.
The sales manager of a multi-brand dealership told The Business Times: “Market demand has been lukewarm in the past few weeks, as a lot of Singaporeans have been travelling, rather than car shopping.”
The two COE categories for cars – A and B – rose dramatically in October, following an announcement by the government that electric vehicle (EV) incentives would be reduced in 2026, sparking high demand and pushing premiums up.
Premiums have cooled since then, but not enough to re-ignite demand.
“The recent COE drops are not drastic enough to make consumers rush back in. When they drop bit by bit, it gives buyers the feeling that it might be cheaper the next round, and they hold off on buying,” the manager added.
But premiums may have remained relatively high, as some dealers could have overbid in order to make sure they secure COEs.
Ng Choon Wee, the commercial director for Hyundai distributor Komoco Motors, said: “The total number of bids received was lower, but premiums in this COE round were supported by aggressive bidding.”
“Category B had 294 excess bids, from 708 in the last round, but the premium decreased by only $5,990 after it went up by $14,889 in the last round. With the holiday season and COEs still high, I doubt the COE will maintain at this level unless there’s aggressive bidding,” he said.
Ng said that dealers with lots of EV stock to clear or targets to meet could have carried out such bidding, as there is only one bidding round left in 2025.
“(These dealers) will see S$10,000 less, in terms of advantage, next year because of lower incentives, so they have a sales pitch to push for more orders now,” he said.
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