Singapore's Certificate of Entitlement premiums rose in most categories during the first open bidding exercise in May 2026 [2].
These shifts in the COE market directly affect the cost of vehicle ownership in the city-state, where the government uses the quota system to control traffic congestion. Fluctuations in these premiums can signal changes in consumer demand for different vehicle classes.
According to data from the bidding exercise, the Cat B COE premium rose 2.6% to $129,501 [1]. This category typically covers cars with more powerful engines or larger frames. The increase reflects a rising cost for owners seeking higher-performance vehicles in the current market [2].
In contrast, the Cat A category saw a decline. The Cat A COE premium dipped to $124,229 [1]. Cat A generally applies to smaller engines, and this decrease provides a slight reprieve for buyers looking for more economical vehicle options.
While most categories trended upward, the divergence between Cat A and Cat B highlights a split in buyer behavior. The total cost of registering a new car remains high as these premiums are added to the base price of the vehicle [1].
“Cat B COE premium rose 2.6% to $129,501”
The rise in Cat B premiums alongside a dip in Cat A suggests a shifting preference or supply-demand imbalance between luxury or high-powered vehicles and smaller, more efficient cars. Because the COE is a critical component of Singapore's transport policy, these price movements reflect the ongoing tension between urban congestion management and private vehicle demand.
