Executive Summary
The Certificate of Entitlement (COE) market in May 2026 displayed a diverging trend between smaller cars and larger vehicles. While Category A premiums saw a marginal dip, Category B and the Open Category (Category E) experienced notable increases, with Category E crossing the $130,000 mark. Competition remained fierce, particularly for commercial vehicles and large cars, reflecting sustained demand despite high price points.
First Bidding Exercise Results
| Vehicle Class | Quota | Bids Received | Bids Success | Premium (SGD) | Over-subscription % |
|---|---|---|---|---|---|
| Category A | 1,301 | 2,071 | 1,294 | $124,790 | 159.19% |
| Category B | 883 | 1,332 | 861 | $126,236 | 150.85% |
| Category C | 293 | 511 | 291 | $87,479 | 174.40% |
| Category D | 529 | 649 | 527 | $9,452 | 122.68% |
| Category E | 254 | 479 | 248 | $127,700 | 188.58% |
Second Bidding Exercise Results
| Vehicle Class | Quota | Bids Received | Bids Success | Premium (SGD) | Over-subscription % |
|---|---|---|---|---|---|
| Category A | 1,239 | 2,283 | 1,227 | $124,229 | 184.26% |
| Category B | 869 | 1,469 | 854 | $129,501 | 169.04% |
| Category C | 292 | 468 | 292 | $92,223 | 160.27% |
| Category D | 524 | 588 | 517 | $9,689 | 112.21% |
| Category E | 256 | 436 | 248 | $130,000 | 170.31% |
Detailed Analysis
Bidding Competition
Competition for COEs intensified significantly for passenger cars in the second half of May. Category A saw its over-subscription rate jump from 159.2% to 184.3%, indicating a surge in last-minute bidding for smaller engine cars. Category B also saw a tighter race, with the subscription rate climbing to 169.0% as buyers rushed to secure certificates before further potential hikes.
Premium Movements
The most significant movement occurred in Category C (Commercial Vehicles), which spiked by $4,744, a 5.42% increase from the first round. This suggests strong business activity or a response to tightening quotas for goods vehicles. Category B followed with a $3,265 increase (2.59%), ending the month at $129,501. In contrast, Category A remained relatively flat, decreasing by a negligible $561 (-0.45%), providing a small window of stability for entry-level car buyers.
Category Performance
Category E (Open Category) continues to serve as a leading indicator of market sentiment for luxury vehicles. Reaching $130,000, it remains the most expensive category, typically utilized for larger cars (Category B). The motorcycle segment (Category D) showed moderate growth of 2.51%, settling at $9,689, which remains relatively high compared to historical norms but stable within the context of 2026.
What This Means for Car Buyers
Category A Buyers (Small Cars)
If you are looking for a car with a 1,600cc engine or below, the stability in Category A is a positive sign. However, the high over-subscription rate in the second round suggests that prices are unlikely to drop significantly in the coming month. Buyers should consider placing bids if they have immediate needs, as demand remains robust.
Category B Buyers (Larger Cars)
For those eyeing larger cars, the upward pressure is evident. A $3,000 jump within two weeks indicates that market demand is outstripping the available quota. If you are on the fence, be prepared for the possibility of Category B premiums breaching the $135,000 mark if current trends persist.
Commercial Vehicle and Motorcycle Buyers
Business owners should budget for higher costs as Category C premiums continue their volatile upward trajectory. Motorcycle buyers, on the other hand, can expect prices to hover around the $9,500 to $10,000 range, making it essential to factor in the high COE when purchasing lower-cost bike models.
Market Outlook
With the mid-year period approaching, seasonal sales and promotional activities by dealers may keep demand high. Prospective buyers should monitor quota announcements for the next quarter closely, as any reduction in supply will likely push these already high premiums even further.