October 2025 COE Bidding: Premiums Ease
Executive Summary
October 2025 COE bidding exercises presented a mixed but generally softer market, particularly for passenger vehicles. The first bidding exercise saw high premiums across most categories, with Category B hitting $141,000 and Category E reaching $140,009. However, the second bidding exercise brought a significant easing, with notable premium drops in Category A, B, and E, making it a more favorable round for car buyers. While competition remained robust, especially in the open categories, the overall over-subscription rates declined in the second round, indicating a slight cooling in demand or a more balanced supply-demand dynamic. Commercial vehicles (Category C) saw a marginal increase in premium, while motorcycles (Category D) experienced a slight dip.
First Bidding Exercise (October 2025, Bidding No. 1)
| Vehicle Class | Quota | Bids Received | Bids Success | Premium (SGD) | Over-subscription Rate | Success Rate |
|---|---|---|---|---|---|---|
| Category A | 1268 | 2572 | 1239 | 128105 | 2.08x | 48.2% |
| Category B | 830 | 1202 | 828 | 141000 | 1.45x | 68.9% |
| Category C | 274 | 424 | 273 | 74301 | 1.55x | 64.4% |
| Category D | 533 | 630 | 528 | 9810 | 1.19x | 83.8% |
| Category E | 259 | 472 | 251 | 140009 | 1.88x | 53.2% |
Analysis of First Bidding Exercise: The first round of October COE bidding was highly competitive, especially for passenger cars. Category A saw over two bids for every successful certificate, pushing its premium to a high of $128,105. Category B and E premiums also reached significant figures at $141,000 and $140,009 respectively, with over-subscription rates of 1.45x and 1.88x. This round suggested strong demand, particularly for larger and premium vehicles. Commercial vehicles (Cat C) and motorcycles (Cat D) also saw more bids than available certificates, but with comparatively lower over-subscription rates. Quota utilization was nearly complete across all categories, indicating strong underlying demand for the available certificates.
Second Bidding Exercise (October 2025, Bidding No. 2)
| Vehicle Class | Quota | Bids Received | Bids Success | Premium (SGD) | Over-subscription Rate | Success Rate | Premium Change (%) |
|---|---|---|---|---|---|---|---|
| Category A | 1270 | 1968 | 1262 | 122000 | 1.56x | 64.1% | -4.76% |
| Category B | 809 | 977 | 800 | 131889 | 1.22x | 81.9% | -6.46% |
| Category C | 276 | 427 | 276 | 76801 | 1.55x | 64.6% | +3.37% |
| Category D | 533 | 598 | 528 | 9389 | 1.13x | 88.3% | -4.30% |
| Category E | 261 | 414 | 260 | 136000 | 1.59x | 62.8% | -2.86% |
Analysis of Second Bidding Exercise: The second COE bidding exercise in October brought relief to prospective car owners. Category A saw its premium drop by a substantial 4.76% to $122,000, accompanied by a noticeable decrease in over-subscription from 2.08x to 1.56x. Category B experienced the most significant premium decline of 6.46%, falling to $131,889, with its over-subscription rate easing to 1.22x. Similarly, Category E, the Open Category, saw a 2.86% reduction in its premium to $136,000. This downward trend indicates that demand might be moderating or that bidders are exercising more caution after the high premiums of the first round.
In contrast, Category C (commercial vehicles) registered a slight premium increase of 3.37% to $76,801, suggesting steady demand in the logistics and business sectors. Category D (motorcycles) continued its accessible trend with a further 4.30% decrease, settling at $9,389. Quota utilization remained high across all categories, with successful bids almost matching the available quota, reflecting the persistent demand for vehicle ownership in Singapore.
Market Insights for Car Buyers
The October 2025 COE bidding results paint a clearer picture for car buyers. The significant drop in premiums for passenger vehicles (Cat A, B, and E) in the second exercise offers a more attractive entry point than the start of the month.
- For budget-conscious car buyers (Category A): The premium easing is a positive sign. Keep a close watch on future tenders, as this trend could indicate a period of more stable or gradually declining prices, especially if quota supply remains consistent.
- For premium car buyers (Category B & E): The substantial drops in these categories suggest that the market for larger and more powerful cars is softening. While still high, these figures offer a better deal than previous rounds. It's an opportune time for those who've been waiting for a dip.
- Commercial Vehicle Buyers (Category C): The slight increase in Cat C premiums indicates resilient demand in the commercial sector. Businesses should factor in potential fluctuations but generally expect premiums to hover around current levels.
- Motorcycle Enthusiasts (Category D): Premiums continue to be the most affordable, making motorcycle ownership relatively accessible.
Overall, the second October bidding round provided a welcome respite, particularly for passenger car hopefuls. While it's difficult to predict future COE movements with certainty, the current data suggests a potentially less aggressive bidding environment compared to previous peak periods.