Singapore COE premiums hit new highs as Category A crosses S$124,790

Key facts

• Category A COE premium rose 1.4% to S$124,790 on May 6, 2026.
• Category B premium increased 4.3% to S$126,236.
• Commercial vehicle (Category C) premium jumped 4.76% to S$87,479.
• Motorcycle COE (Category D) rose 1.7% to S$9,452.
• Open category (Category E) premium climbed 2.2% to S$127,700.
• Total bids received: 5,042; quota available: 3,260.
• Category A quota fell 2% to 7,434 for May-July 2026.
• Category B quota rose 7% to 5,205 for the same period.

Sixth straight increase pushes Category A near record

Singapore’s certificate of entitlement (COE) prices surged across all categories in the latest bidding exercise on May 6, extending a relentless upward trend that has now lasted six consecutive rounds. The premium for Category A, which covers smaller cars and electric vehicles, closed at S$124,790, a 1.4% increase from the previous tender on April 22. That price is the highest since the all-time record of S$128,105 set in October 2025. The rise underscores persistent demand for mainstream vehicles, even as the government adjusts quotas. Category A premiums have now risen for six straight exercises, a streak that has pushed the cost of a basic car certificate well above S$120,000 for the first time since last October.

Luxury and commercial categories also climb sharply

Category B certificates, for larger and more powerful cars, rose 4.3% to S$126,236, reversing a previous gap where Category A had briefly exceeded Category B prices. The open category (Category E), which can be used for any vehicle type except motorcycles, increased 2.2% to S$127,700. Commercial vehicle certificates (Category C) posted the largest percentage gain, climbing 4.76% to S$87,479, marking the sixth consecutive increase in that category as well. Motorcycle premiums (Category D) rose 1.7% to S$9,452. The Land Transport Authority (LTA) reported that 5,042 bids were received against a quota of 3,260 certificates, indicating continued strong demand relative to supply.

LTA warns of Car Expo effect as quotas shift unevenly

In a statement following the exercise, the LTA noted that the upcoming Car Expo, scheduled for May 9 and 10 at Singapore Expo, is likely to push COE prices even higher. “We urge car buyers to bid prudently,” the authority said, citing past experience that the biannual car show tends to elevate premiums and negate any discounts offered during the event. The latest tender is the first since the LTA announced the May-to-July quota, which increased overall by 1.2% to 19,052 certificates. However, the composition shifted: Category B quotas rose about 7% to 5,205, while Category A quotas fell by approximately 2% to 7,434. This divergence may reflect efforts to balance supply across segments, but it has not cooled the market for mainstream cars.

Government reviews COE system amid structural shifts

The relentless rise in COE prices has prompted a broader policy review. On March 4, Acting Minister for Transport Jeffrey Siow announced that the government is examining the COE system, after members of parliament raised concerns that mainstream car premiums had overtaken those for luxury vehicles. The inversion, largely driven by surging demand for Category A electric vehicles, has called into question the current classification framework. Siow told Parliament that there is “probably still some merit to having some distinction” between mainstream and luxury cars, but the review will consider whether the categories remain appropriate. The growing popularity of electric vehicles, which often fit Category A specifications, has altered demand dynamics and blurred traditional segment boundaries.

Outlook: demand strength tests quota adjustments

The latest data suggest that even a modest increase in overall supply has not been enough to temper bidding. The 1.2% quota rise for May-July was driven largely by Category B, yet that category still saw a 4.3% price increase. Meanwhile, the Category A quota reduction appears to have added upward pressure on the most sought-after certificates. With the Car Expo expected to stoke further demand, and the COE system under official review, buyers face an uncertain near-term outlook. The LTA’s advice to bid prudently may be heeded by some, but the persistent six-tender rally indicates that market forces remain powerful. The government’s review, expected to address both classification and quota mechanisms, will be closely watched for signs of structural reform.

The bottom line

• Category A COE premiums have risen for six consecutive exercises, reaching S$124,790.
• Commercial vehicle certificates saw the largest percentage increase at 4.76%.
• The upcoming Car Expo on May 9-10 is expected to further elevate prices.
• Category A quota fell 2% while Category B quota rose 7% for May-July 2026.
• The government is reviewing the COE system, including car classification, amid structural shifts from electric vehicles.
• Total bids (5,042) exceeded quota (3,260), indicating sustained demand.