Singapore’s car ownership just got even more expensive. The latest Certificate of Entitlement (COE) bidding in July 2025 has stunned many drivers and potential buyers as prices skyrocketed to historic highs. This jump isn’t just a blip—it’s part of a trend that has been building up through the year.
Let’s break down the numbers, understand why prices are soaring, and what it means for Singapore’s car market.
What Is the COE & Why Does It Matter?
For anyone unfamiliar with Singapore’s unique car bidding system, the COE is a permit that allows you to own and use a vehicle for 10 years. Without it, you simply can’t put a car on the road.
This system was introduced to control vehicle population and manage road congestion in the city-state. But in 2025, this mechanism has taken on a whole new level of financial strain for car buyers.
COE Bidding Results – July 2025
Here’s how the COE prices fared across different categories in the latest bidding exercise:
| COE Category | Vehicle Type | July 2025 Price (SGD) | Change From June |
|---|---|---|---|
| Category A | Cars ≤ 1,600cc / 130bhp | $109,000 | ↑ $6,000 |
| Category B | Cars > 1,600cc / 130bhp (Premium) | $145,889 | ↑ $7,000 |
| Category C | Goods vehicles and buses | $86,500 | ↑ $3,000 |
| Category D | Motorcycles | $11,801 | ↓ $200 |
| Category E (Open Category) | Any vehicle type (mostly luxury) | $155,556 | ↑ $8,000 |
What’s Fueling the Singapore COE Price Surge 2025?
Several factors are behind the relentless climb in COE premiums:
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Limited COE quotas released by the government
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Strong demand for new cars, including EVs
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A rise in affluent buyers fueling the premium segment
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Speculative buying driven by fear of further price hikes
These pressures combined have driven the Singapore COE price surge 2025 to unprecedented levels.
Impact on Buyers and Car Dealers
For Buyers
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Many middle-class buyers are delaying purchases
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Used cars are gaining popularity as a cost-effective alternative
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Motorcycles remain more affordable despite a slight dip
For Dealerships
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Premium car showrooms still see strong sales
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Budget vehicle dealers face slower footfall
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Flexible loan plans and promotions are on the rise
Looking Ahead: What to Expect in Future Bidding Rounds?
Industry experts believe the Singapore COE price surge 2025 could continue unless measures are introduced to ease demand or increase supply. Potential government intervention may include quota adjustments or incentives for electric vehicle purchases.
Until then, car buyers should stay updated on bidding cycles and make strategic timing decisions.
FAQs
What is the COE and how does the car bidding system work in Singapore?
The COE is a mandatory certificate required to own and operate a vehicle in Singapore for 10 years. It is allocated via a car bidding system, where prices are determined by competitive bids during scheduled exercises.
Why are COE prices rising in 2025?
The Singapore COE price surge 2025 is driven by reduced certificate supply, high demand from the premium segment, economic optimism, and speculative bidding.
Which COE category is affected the most?
Categories B and E have been impacted the most due to increased demand for larger and luxury cars in the premium segment.
Is it still worth buying a car in Singapore in 2025?
If budget allows and need is urgent, buying could be viable. Otherwise, many are opting for used cars, car leasing, or waiting for possible price corrections in future bidding rounds.
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