COE premiums hit $137k record high: Exploring car ownership and property choices

In the ever-evolving landscape of our automotive market, the Certificate of Entitlement (COE) system has taken centre stage once again as it reaches record-breaking heights. As of the 1st COE bidding exercise for September 2023, both Category B and the Open Category have hit an astonishing record of S$134,889 and S$137,000, respectively.
This surge in COE premiums has far-reaching implications, not only for car buyers but also for the broader property market.
In this article, we delve into the details of this unprecedented price hike, its underlying causes, and the potential impact on property purchasing behaviour.
In the latest COE bidding exercise for September 2023, the premiums for both Category B and the Open Category have reached unprecedented levels, causing waves of concern and speculation among car enthusiasts and industry experts alike.
Here's a summary of it:
Category | Current COE | Previous COE | Increase/ Decrease |
September PQP | Bids Received |
A (Cars up to 1600CC & 97KW) | S$101,000 | S$100,000 | + S$1,000 | S$97,652 | 840 |
B (Cars above 1600CC or 97KW) | S$134,889 | S$129,890 | + S$4,999 | S$122,414 | 723 |
C (Goods Vehicle & Bus) | S$82,889 | S$82,801 | + S$88 | S$82,345 | 182 |
D (Motorcycles) | S$10,901 | S$11,402 | – S$501 | S$10,868 | 758 |
E (Open) | S$137,000 | S$131,000 | + S$6,000 | – | 219 |
Industry insiders and experts have identified several contributing factors to this sudden surge in COE premiums:
While COE prices are primarily associated with car ownership, their fluctuations can have indirect effects on property decisions. The inverse relationship between COE prices and property choices is noteworthy.
Here's how COE premiums can affect housing decisions:
In summary, the soaring COE premiums in Singapore, especially in Category B and the Open Category, are reshaping not only the automotive landscape but also influencing property buying behaviour. The intricate relationship between these two aspects underscores the need for prospective property buyers to consider the broader economic context when making housing decisions.
ALSO READ: COE prices hit new highs as premium for Open category soars to $137k, bigger cars reaches over $130k