Honda Stepwagon Spada e-HEV 2.0 8 Seater
Keymotor
Posted on - 05 June 2025

In a surprising turn of events, the latest Certificate of Entitlement (COE) bidding exercise on June 4, 2025, saw premiums across most categories fall to their lowest levels in nearly a year. This development presents a timely opportunity for prospective car buyers in Singapore to make their move.

COE Premiums See Significant Declines

The June 4 tender results revealed notable decreases in COE premiums:

  • Category A (Cars ≤1,600cc & ≤130bhp, or ≤110kW): Dropped to $96,999
  • Category B (Cars >1,600cc or >130bhp, or >110kW): Fell to  $113,000
  • Category E (Open Category): Decreased to $113,900

These figures mark the lowest COE premiums since March 2024, signaling a potential shift in the market dynamics.

Factors Contributing to Price Stabilization:

  • Increased COE Supply Starting February 2025, the LTA began injecting up to 20,000 additional COEs across all vehicle categories. This move aims to stabilize COE prices by addressing the supply constraints that have historically driven premiums upward.
  • Implementation of ERP 2.0 The upcoming ERP 2.0 system enhances traffic congestion management, allowing for a more flexible and responsive approach to COE quota adjustments. This technological advancement supports the LTA’s efforts to maintain a balanced vehicle population.
  • Market Dynamics Analysts have observed that COE prices closely follow classical supply and demand principles. With the increased supply and a measured demand, prices have shown a downward trend, making car ownership more accessible.

Why Now Is an Opportune Time to Buy?

  • Affordability: The stabilization of COE prices translates to lower overall costs for new car buyers.
  • Increased Availability: With more COEs in circulation, the likelihood of securing a certificate has improved, reducing the uncertainty associated with the bidding process.
  • Strategic Advantage: Purchasing a vehicle during this period positions buyers ahead of potential future price increases, especially if demand surges or supply adjustments occur.

The current COE environment in Singapore presents a unique window of opportunity for individuals considering car ownership. With stabilized prices, increased supply, and supportive policy measures, June 2025 stands out as an advantageous time to make a purchase. Prospective buyers are encouraged to assess their options and act promptly to capitalize on these favorable conditions.

Key Motor

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