Singapore Sees Broad Drop in COE Prices, Motorcycles Buck Trend

On June 4, 2025, the Certificate of Entitlement (COE) market experienced a significant change during the latest bidding process. Buyers of cars saw prices drop in most areas, except for motorcycles which cost more. This outcome happened when the Land Transport Authority (LTA) announced that the COE quota for the May–July period has increased which is helping to reduce problems in the market.

Motorcycle COE Prices Rise as All Other Categories Fall

In the latest bidding results:

• Category A (cars ≤ 1,600cc & ≤ 130bhp): S$96,999, down from S$102,501
• Category B (larger & more powerful cars): S$113,000, down from S$116,988
• Category C (commercial vehicles): S$62,000, down from S$63,189
• Category E (Open Category): S$113,900, down from S$118,010
• Category D (motorcycles): S$9,000, up from S$8,707

COEs for motorcycles rose by 3.4% while the market as a whole went down, showing motorcycle demand is up or possibly supply is lower.

Increased COE Quota Starting to Show Market Impact

The main factor behind falling prices is the rise in Certificates of Entitlement (COE). In April, the LTA told us that the COEs for the quarter had actually risen more than 6% compared to the previous quarter. The total quotas for the quarter were 18,232 which is higher than the 17,133 issued in the earlier quarter by 8%. There is a 21% rise in the number of certificates compared to the same time last year. More cars on the market may reduce the high prices that buyers have suffered from years of short COE supply.

Singapore’s vehicle ownership policy revolves heavily around the Certificate of Entitlement (COE) system. Only after buying a car in a bidding process can a buyer apply for a COE. COEs are valid for 10 years, there are few of them and because they are in high demand, they drive up the price of vehicles in Singapore. For quite a while, especially because COE premiums are often above the cost of the car, car ownership has been difficult for many families.

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Economic and Policy Factors Influence Current Bidding Trends

Many analysts think that the recent drop in COE prices is caused by changes in transport regulations and new ways people drive. Releasing a larger quota for LTA is part of making transport more environmentally friendly. And at the same time, Singapore is working on making public transportation better and encouraging more electric vehicle usage. Economic problems in the region caused by inflation and unreliable supply lines may cause buyers to delay major purchases which reduces the prices they are willing to pay.

Notwithstanding this week’s fall, market experts believe that COE prices can still jump back up. With 4,045 bids received versus only 3,086 needed, it is obvious that there is a lot of interest in the top segments. Experts suggest that people entering the market track future auctions and be ready for possible changes in prices.