Singapore's Certificate of Entitlement (COE) premiums closed mixed in the latest bidding exercise, marked by a significant drop in premiums for larger cars. Category B premiums, for larger and more powerful vehicles, fell to S$105,001, a decrease from S$110,890 in the prior session. This marks the first time Category B prices have dipped below those for smaller cars in Category A since July 2018. Category A premiums, for smaller cars, saw a slight increase to S$106,501.
COEs for commercial vehicles rose to S$74,999, while motorcycle premiums declined to S$7,989. The Open category COE, primarily used for large cars, also saw a decrease, closing at S$112,890.
These figures are the first to reflect changes to the Preferential Additional Registration Fee (PARF) rebate scheme. The revised scheme, announced in the recent Budget, reduces rebate rates and halves the rebate cap. Analysts suggest these changes could potentially boost electric vehicle sales and the secondhand car market due to altered depreciation values.
This bidding exercise also occurs during a period where the overall COE supply is set to decrease compared to the previous quarter, representing the first such drop since 2022.