If you’ve ever considered buying a car in Singapore, the phrase “COE prices” probably makes your wallet tremble. On August 28, 2025, The Straits Times published an insightful piece examining why Certificate of Entitlement (COE) premiums are staying stubbornly high, and what drivers and potential car owners can expect in the near future. Let’s break down the key takeaways and explore what’s fueling the COE rollercoaster.
**Competition Remains Fierce: Demand Isn’t Letting Up**
Singapore’s car market isn’t just about getting from point A to B. It’s a status symbol, a daily convenience, and—thanks to the COE system—a tightly controlled commodity. Even as electric vehicles (EVs) become the rage, fierce competition between car buyers drives up COE prices. With each bidding exercise, hopefuls jostle for that coveted certificate, pushing premiums even higher.
**A Shrinking Quota Means Tougher Odds**
One of the main reasons for the persistent high prices? A constrained supply. The government limits the number of new cars on the road by controlling the COE quotas, and recent years have seen these quotas tighten considerably. With fewer certificates available, premiums go up—it’s simple supply and demand.
**EV Incentives – But for How Long?**
Right now, potential car owners are keeping an eagle eye on incentives for electric vehicles. These sweeteners make EVs more attractive, but what happens after 2025 when their fate becomes uncertain? The Straits Times notes that the current lack of clarity on long-term EV policies is stirring uncertainty, prompting some to bid now and not risk missing out later.
**Where Do We Go From Here?**
The article suggests that while there are hopes for lower premiums as quotas potentially increase in the years ahead, nothing is guaranteed. Unpredictable policy changes, fluctuating demand, and behavioral shifts among buyers mean that the future of COE prices is anything but certain.
**What Can Car Buyers Do?**
If you’re hoping for a bargain, patience might be your best friend. Stay updated on policy changes, keep an eye on quota announcements, and be prepared for a long game. Alternatively, embrace alternative transportation—public transit or car-sharing services—until the winds change.
Ultimately, the COE saga is one of supply, demand, and constant change. While Singapore’s car landscape remains one of the world’s most expensive, staying informed is your best asset.
(Credits: Original analysis and quotes from The Straits Times, Aug 28, 2025)
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