Singapore COE Prices Fall Again in December 2025: What’s Driving the Downtrend?

COE Prices Slide Further in December 2025: Key Numbers and Market Sentiment

The first Certificate of Entitlement (COE) bidding round for December 2025 in Singapore has closed, and the results are clear: prices in most categories dipped, with only minor movement in commercial vehicles. The COE system, which controls the number of vehicles on Singapore’s roads through limited quotas, continues to be a focal point for car buyers, dealers, and market watchers.

Category A COEs (for cars up to 1600cc and 130bhp, including EVs up to 110kW) closed at $105,413, down by $3,587 compared to the previous round. Category B (larger cars and more powerful EVs) ended at $123,900, falling by $5,990. Commercial vehicle and bus COEs (Cat C) were almost flat, ticking up just $112 to $76,501. Motorcycles (Cat D) saw a $440 drop, closing at $8,289. The open category (Cat E), which covers all vehicles except motorcycles, slipped by $2,001, finishing at $123,000.

These mostly downward movements come during a period when consumer demand is subdued, partly due to the year-end holiday season and widespread travel. Many buyers are holding back, waiting for the next round or for incentives to shift in 2026.

Industry Voices: Dealers and Experts Read the Road Ahead

Motorist Singapore spoke with several senior automotive figures to gauge sentiment ahead of the final COE bidding for 2025. Lee Hoe Lone, managing director of Premium Automobiles (representing Zeekr, Xpeng, DEEPAL, and AVATR), shared from abroad: “My guess is, stay or further drop. I can gauge better after this weekend (Dec 6-7). Sales should pick up a bit but not crazy, plus a lot of people are travelling. I’m in Africa now.”

Ng Choon Wee, commercial director at Komoco Motors (Hyundai’s authorised agent), echoed the sense of a soft market: “I doubt the COE will maintain at this level, unless there’s aggressive bidding.” Nicholas Wong, CEO at Kah Motor (Honda’s agent), added: “Many cars cannot make it for this year registration, so no point to chase after it, and pressure on prices will continue to ease till end of 2025.”

Automotive consultant Vincent Ng, who works with Vincar on brands like GAC, Aion, and Hyptec, was particularly bearish: “Cat A below $100k.” On the other hand, Soh Ming, managing director at Dongfeng Singapore by Volt Auto, saw potential volatility in Category B: “Year-end sales are normally expected to fall as it is a travelling season due to holiday. I would expect Cat B to spike, as it is the last bid before the incentive change for hybrid and higher-OMV vehicles which are in the Cat B segment.”

Anthony Teo, managing director of Vantage Automotive (BYD and DENZA distributor), predicted stability or a slight uptick: “I feel that the final bidding will be the same as the current bid or go up slightly, because traffic will increase in showrooms and dealers need to meet their year-end target.” Volvo Car Singapore’s managing director Corinne Chua forecasted marginal movement: “Should be around current (levels), as the demand is lukewarm and a lot of people are travelling.”

Why Are COE Prices Moving Down?

The downward trend is a product of several factors. As December rolls in, car buyers traditionally become less active, distracted by holidays and travel plans. Additionally, with some cars unlikely to be registered before year-end, there is less urgency to secure a COE at high prices. This “wait-and-see” approach means fewer aggressive bids, allowing premiums to ease.

Dealers and consultants are also watching for policy changes set to take effect in 2026, particularly around incentives for hybrid and high-OMV vehicles. This could prompt strategic bidding in certain categories, especially Category B, as buyers and dealers seek to lock in current rates before new rules apply.

Industry sentiment overall seems cautious, with most expecting prices to remain soft or drop further in the final round of 2025. The open category, often a bellwether for broader market activity, has mirrored this pattern, with fewer bids and lower premiums.

Looking Ahead: What Will the Final 2025 COE Bidding Bring?

With the next COE bidding scheduled for 15 December (results due 17 December), all eyes are on whether this trend will continue. Dealers anticipate a slight pick-up in sales activity as year-end targets loom, but most remain realistic about the challenges. As Dongfeng Singapore’s Soh Ming observed, the final round is “an indicator of the buying power in consumers moving into 2026. As we know, it’s the time of ‘New Year, New Car’ mentality, as well as bonus and promotions, which will be able to fuel the urge to buy as well.”

For car owners considering an upgrade or renewal, the softer COE market could mean better deals. Motorist Singapore offers free online car valuations and COE renewal advice, helping owners decide whether to scrap or extend their vehicle’s life in the face of shifting premiums.

Meanwhile, broader questions linger: Are COE prices set to stabilise, or will policy tweaks and pent-up demand spark fresh volatility in the new year? The answer, as always, will depend on the interplay between government quotas, consumer sentiment, and dealer strategies.

For now, buyers and sellers alike are keeping a close watch on the numbers, knowing that every bid reflects the pulse of Singapore’s unique automotive market.

Assessment: December 2025’s COE results reveal a market in flux, shaped by cautious consumer behaviour and seasonal travel. While most experts anticipate continued softness, upcoming policy changes and year-end incentives could inject new energy into the final bidding round. The next few weeks will be critical for both buyers and dealers, as the COE system remains a powerful force in Singapore’s car ownership landscape.