Budget 2026’s AI push could power property demand in one-north

/ EdgeProp Singapore

February 12, 2026 11:44 PM SGT

Light

Dark

Prospects of a larger AI park could ignite developer and investor interest in one-north, say analysts (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Prime Minister Lawrence Wong’s 2026 Budget speech on Feb 12 centred on positioning Singapore for a more fragmented and protectionist global environment.

“Singapore will not be passive in the face of rapid changes around us,” said Wong. “We will adapt. We will compete. We will continue to move forward with confidence.”

A key pillar of his speech was artificial intelligence (AI), which he described as a strategic lever for shaping Singapore’s future. “If harnessed well, AI will be a strategic advantage for Singapore. It can help us overcome our structural constraints — our limited natural resources, rapidly ageing population, and tight labour market,” he said.

Search for the latest New Launches, to find out the transaction prices and available units

In fact, Wong mentioned “AI” 56 times in his speech.

“To build a vibrant AI-enabled economy, it helps to have a focal point — one that brings together AI founders, practitioners, researchers and innovators, and catalyses more collaborations and interactions,” he added.

From a pilot initiative known as “Lorong AI” — a dedicated co-working space serving as a convening hub for the AI community — the government now intends to establish a larger AI park at one-north.

“This will be a new cluster to catalyse ideas, forge collaborations, and translate AI initiatives into practical solutions for businesses and public services,” Wong said.

An upcoming launch this year is at Media Circle Parcel B within one-north (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Property implications in one-north

The policy thrust could have significant real estate implications, analysts say. “Singapore’s plan to establish a larger AI park in one-north signals a strong push towards building a vibrant, AI-enabled economy,” says Marcus Chu, CEO of ERA Singapore.

The proposed park aims to become a central hub where startups, technology firms, researchers and investors collaborate to turn AI concepts into commercially viable solutions, Chu observes.

Such an ecosystem could attract global technology companies, investors and highly skilled talent, he adds. It would also create quality jobs across data science, engineering and product development.

This, in turn, could support housing demand in one-north and the broader District 5 area.

Last year, four new private residential projects were launched in District 5: the 501-unit Elta, the 385-unit Bloomsbury Residences, the 343-unit Lyndenwoods and the 399-unit Faber Residence. Another project at Media Circle (Parcel A), with an estimated 325 units, is expected to be launched this year.

The prospect of a larger AI park could spur demand for remaining unsold units in these developments, notes Chu. He adds that an influx of foreign professionals and well-paid technology workers may also bolster demand for long-stay serviced apartments, including sites at Upper Thomson Road (Parcel A) and Media Circle (Parcel B) under the Government Land Sales (GLS) programme.

“A high-income tenant profile, coupled with stable career growth, could support rental resilience and strengthen long-term capital appreciation potential,” says Chu.

Industrial, data centres, offices

Lee Sze Teck, senior director of data analytics at Huttons Asia, agrees that an expansion of the AI talent pool — particularly from overseas — is likely to lift housing rental demand within one-north and surrounding areas.

He adds that the establishment of an AI park could also heighten developer interest in the GLS site at Dover Drive, near Mediapolis in one-north. Launched for sale last November, the tender closes on Mar 26.

Beyond residential demand, Lee notes that increased AI adoption may spur growth in startups and firms providing AI-related services. This could drive stronger demand for high-specification industrial and business park space, potentially supporting rental growth in those segments.

Data centre demand is also expected to rise. While Singapore faces land and power constraints, Lee believes neighbouring markets such as Johor in Malaysia and Batam in Indonesia could benefit from spillover demand.

Wong Shanting, director and head of research for real estate at Newmark Singapore, says the push towards an AI-enabled economy is expected to reshape property demand across both industrial and office sectors over the medium term.

“Separately, it presents growing opportunity — and urgency — for older buildings to enhance their specifications and remain competitive,” she says. “The flight-to-quality trend has already compromised occupancy levels among older assets.”

Cushman & Wakefield head of research, Singapore and Southeast Asia, Wong Xian Yang, notes that business parks at one-north and Science Park might attract higher interest. In particular, high-tech or high-spec industrial developments with high power capabilities and sustainability credentials are expected to benefit from AI-driven demand.

Over time, newer business parks with modern specs are likely to capture AI-driven demand amid flight-to-quality trends, which could stimulate asset enhancement initiatives at older business parks, he adds.

For tech startups, they typically begin small and thus gravitate towards co-working or fitted office solutions that provide flexibility and allow them to scale rapidly, says Wong from Cushman & Wakefield.

For more news and analysis, read our weekly e-paper. Prefer a print copy? Get it delivered to your home or office every Monday.