In recent months, Singapore's Certificate of Entitlement (COE) prices for Category A vehicles have reached unprecedented levels, with the latest bid closing at $129,000 on July 8, 2026. This surge is attributed to the expiration of electric vehicle (EV) incentives and extended intervals between bidding exercises.
The Land Transport Authority (LTA) has scheduled two COE bidding exercises each month in 2026, typically with a two-week gap. However, certain months, including July, feature a three-week interval between the second and first exercises. This extended period allows dealers additional time for sales and marketing efforts, potentially increasing demand and driving up COE prices.
The expiration of EV incentives has also played a significant role in the price escalation. Previously, these perks made EVs more affordable, leading to increased demand and higher COE premiums. With the incentives now expired, the demand for EVs has remained strong, contributing to the sustained high COE prices.
The Prevailing Quota Premium (PQP), a three-month moving average of COE prices, has also seen an uptick, reflecting the rising costs. As of July 2026, the PQP for Category A vehicles stands at $123,315, indicating a trend of increasing COE prices over the past few months.
Industry experts advise potential car buyers to exercise caution, as the current market conditions suggest that COE prices may remain elevated in the near future. Prospective buyers are encouraged to monitor the bidding schedules and market trends closely to make informed purchasing decisions.