December 2025 COE: Cat A Surges, Cat B Plunges
Executive Summary
December 2025 saw a volatile COE bidding landscape in Singapore, with premiums showing a mixed trend across categories. While Category A (small cars) experienced a notable increase, Category B (larger cars) and Category E (open category) witnessed significant drops, indicating shifting demand patterns as the year concluded.
Key Highlights
- Category A premiums climbed by 3.88% in the second bidding exercise, reaching $109,501.
- Category B saw a sharp decline of 7.10%, settling at $115,102 in the second round.
- Category E (Open Category) also dropped by 3.25% to $119,000, aligning with the trend for larger vehicles.
- Motorcycle COE (Category D) eased by 2.51% to $8,081.
- Commercial vehicle premiums (Category C) remained relatively stable, with a slight 0.66% increase to $77,003.
First Bidding Exercise Results
| Vehicle Class | Quota | Bids Received | Bids Success | Premium (SGD) | Over-subscription % |
|---|---|---|---|---|---|
| Category A | 1,280 | 1,557 | 1,272 | $105,413 | 121.64% |
| Category B | 802 | 1,096 | 775 | $123,900 | 136.66% |
| Category C | 286 | 370 | 281 | $76,501 | 129.37% |
| Category D | 534 | 627 | 523 | $8,289 | 117.42% |
| Category E | 291 | 544 | 288 | $123,000 | 186.94% |
Second Bidding Exercise Results
| Vehicle Class | Quota | Bids Received | Bids Success | Premium (SGD) | Over-subscription % |
|---|---|---|---|---|---|
| Category A | 1,283 | 1,647 | 1,259 | $109,501 | 128.37% |
| Category B | 838 | 968 | 832 | $115,102 | 115.51% |
| Category C | 286 | 407 | 285 | $77,003 | 142.31% |
| Category D | 536 | 632 | 532 | $8,081 | 117.91% |
| Category E | 276 | 455 | 252 | $119,000 | 164.86% |
Detailed Analysis
Bidding Competition
The competition for Certificates of Entitlement (COE) showed varied intensity across categories in December. Category E, the Open Category, consistently experienced the highest over-subscription rates (186.94% in Bidding 1 and 164.86% in Bidding 2), underscoring persistent high demand in this versatile category. Conversely, Category B saw a significant easing in competition, with its over-subscription rate dropping from 136.66% to 115.51% – a clear reflection of the premium decline. Category A, however, saw an uptick in over-subscription from 121.64% to 128.37%, indicating intensified demand for smaller passenger vehicles. Commercial vehicles (Category C) also faced stiffer competition, with over-subscription rising from 129.37% to 142.31%, suggesting robust business needs. Motorcycle (Category D) competition remained relatively stable around 117-118%.
Premium Movements
December 2025 presented a contrasting picture of premium movements:
- Category A (Cars up to 1600cc & 130bhp): Premiums saw a significant increase of 3.88%, climbing from $105,413 in the first exercise to $109,501 in the second. This upward trend suggests strong underlying demand for mainstream vehicles, possibly from buyers seeking more accessible car ownership options.
- Category B (Cars >1600cc or >130bhp): This category experienced the sharpest decline, plummeting by a substantial 7.10% from $123,900 to $115,102. This considerable dip could be influenced by year-end promotional activities, cautious consumer spending on luxury items, or a temporary adjustment following previous high premiums.
- Category C (Goods Vehicles & Buses): Commercial vehicle COEs demonstrated remarkable stability, with a marginal increase of just 0.66%, moving from $76,501 to $77,003. This indicates a consistent, albeit measured, demand from businesses for operational vehicles.
- Category D (Motorcycles): Premiums for motorcycles eased slightly by 2.51%, settling at $8,081 from $8,289. Despite the minor dip, premiums remain relatively high for this category.
- Category E (Open Category): Following the trend of larger vehicles, Category E also saw a decrease of 3.25%, falling from $123,000 to $119,000. This category, which is often used for high-end vehicles, typically mirrors the performance of Category B.
Category Performance
The most prominent trend in December 2025 was the clear divergence between Category A and Categories B/E. While Category A continues its upward trajectory, reflecting sustained demand for entry-level and mid-range passenger cars, the premiums for larger and open-category vehicles experienced notable corrections. This suggests a growing divide in the car market, with budget-conscious buyers continuing to exert upward pressure on smaller car COEs, while the premium segment might be undergoing a period of recalibration. The steady performance of Category C and minor fluctuations in Category D underscore that commercial and motorcycle markets operate on distinct demand principles.
What This Means for Car Buyers
Category A Buyers (Small Cars)
Premiums are now firmly above the $109,000 mark and continuing their upward trend. If you're planning to purchase a smaller car, be prepared for competitive bidding. The persistent demand suggests that prices might not significantly retreat in the near future. Considering a purchase soon might be prudent if you anticipate further increases, but always bid within your comfort zone.
Category B Buyers (Larger Cars)
This month brought significant relief, with premiums dropping over $8,000 in the second bidding exercise. This could be a favorable window for those who have been deferring a purchase of a larger car. However, it's advisable to closely monitor the upcoming bidding exercises to ascertain if this downward trend is sustainable or if it represents a temporary year-end market adjustment.
Commercial Vehicle Buyers
Stability remains a key characteristic for Category C. With premiums holding firm around $77,000, businesses can plan their fleet expansions or replacements with greater certainty. The slight increase in competition suggests consistent underlying demand, so securing your COE should be a predictable process without major price volatility.
Motorcycle Buyers
Motorcycle premiums saw a small dip. While any reduction is welcome, the overall price point for a Category D COE remains relatively high. Buyers should continue to bid cautiously, setting a firm budget and not getting carried away by minor fluctuations.
Overall, December 2025 painted a mixed picture for Singapore's COE market. As we head into the new year, prospective car buyers should remain vigilant, carefully observing quota announcements and market sentiment, as COE prices are inherently dynamic and can shift rapidly.