Certificate of Entitlement (COE) premiums for passenger cars and commercial vehicles in Singapore reached a price ceiling after several months of steady increases. The second round of June bidding on June 17 saw premiums for Category A (mainstream cars), Category B (large and luxury cars), and Category C (commercial vehicles) dip slightly, signaling resistance in the market [1, 2, 3, 4].
Market watchers and industry observers noted exhaustion after multiple rounds of COE premium rises. Keith Oh, president of the Automobile Importer & Exporter Association (Singapore), said, "With today’s bidding result, there is some resistance, as the market is exhausted after so many rounds of COE premiums rising" [2].
Despite the dip in premiums, observers do not expect further declines. Competition for COEs remains intense, keeping prices elevated. The softer prices appear to reflect a temporary resistance level rather than a sustained downtrend [1, 2, 3, 4].
The June 17 bidding round was the most recent concrete sign that the COE market may have reached a plateau, following months of upward price pressure [1, 2, 3, 4]. Further bidding rounds will clarify whether premiums stabilize or resume upward movement.
