Singapore’s Certificate of Entitlement (COE) premiums have surged to new heights, with Category A car certificates hitting a record S$129,000 in the latest bidding exercise that concluded on July 8, 2026. This milestone surpasses the previous record of S$128,105 set in October 2025, signaling continued pressure on car ownership costs for the general public. Other categories also saw significant increases, with Category B premiums for larger cars rising to S$130,889, and commercial vehicle certificates reaching an all-time peak of S$95,000.
The COE system is a quota-based mechanism that limits the number of vehicles on Singapore’s roads. To register a car, one must successfully bid for a certificate, which grants ownership rights for 10 years. Because the supply of these certificates is strictly controlled by the Land Transport Authority (LTA) based on vehicle deregistrations, prices are highly sensitive to fluctuations in demand.
Industry experts and the LTA attribute the latest price hike primarily to the three-week gap between the current and previous bidding exercises. This extended period allowed a larger backlog of orders to accumulate, intensifying competition among bidders. Additionally, the market remains influenced by robust demand for new electric vehicles and the ongoing replacement of fleets by private-hire car companies.
While the government has previously implemented measures to increase the supply of COEs, the persistent demand from affluent households and the competitive nature of the bidding process continue to keep premiums elevated. The LTA has urged both buyers and dealers to exercise prudence during these bidding cycles to avoid excessive price volatility.
Looking ahead, the market remains uncertain as stakeholders watch for signs of resistance. While some analysts suggest that prices may be nearing a psychological ceiling, the combination of limited supply and sustained interest in new vehicle models suggests that costs will likely remain high for the foreseeable future.