Budget 2026: How Talent, Tech and Town Hubs May Shape Singapore’s Property Demand

SINGAPORE, 12 February 2026 – Prime Minister Lawrence Wong has delivered Budget 2026, announcing a range of measures to support Singaporeans and strengthen the economy. Budget 2026 reinforces the link between economic strategy and housing demand. Measures focused on AI, infrastructure and talent will have clear location-specific implications for the property market.  

Singapore to establish AI park at One-North

“Singapore’s plan to establish a larger AI park in One North signals a strong push towards building a vibrant, AI-enabled economy. Building on the existing AI initiative, the new park aims to become a central hub where startups, tech firms, researchers, and investors collaborate to turn AI ideas into real-world solutions for businesses and public services.

This ecosystem is expected to attract global technology companies, investors, and highly skilled talent, while creating quality jobs across data science, engineering, and product development. This should create demand for homes in the area, particularly around District 5 (D05), where One-North is located. In 2025, we have seen the launch of three new private projects in D05 and we can expect another new project launch at Media Circle this year.

Following the announcement of the AI park, we may see stronger demand for the remaining units in these projects and stronger interest in future GLS sites in the One-North area.

Additionally, the expected influx of foreign professionals and well-paid tech workers is likely to drive stronger demand for long-stay serviced apartments. A high-income tenant profile, coupled with stable career growth, could support rental resilience and strengthen long-term capital appreciation potential.” 

More Sports Facilities for HDB Towns under the Sports Facilities Master Plan

“The Sports Facilities Master Plan aims to develop and rejuvenate infrastructure to meet Singapore’s diverse and evolving sporting needs and interests. In the coming years, the new Punggol Regional Sport Centre and Toa Payoh Integrated Development will be completed. These large-scale developments will bring more leisure facilities to major HDB towns, greatly enhancing the already strong liveability of these towns.

On a smaller scale, we will also see sports facilities in Farrer Park and Tengah, as well as revamped sports centres in Hougang and Queenstown, open in the future. With GLS sites tendered at Dorset Road (Farrer Park) and Hougang Central, and an upcoming new private project in Tengah Garden Avenue, the enhanced liveability from new sports infrastructure is likely to strengthen the appeal of these towns among homebuyers.”

Higher Work Pass Salary Thresholds May Weigh on Rental Sentiment Among Foreigners

“In line with the Government’s objective of attracting talent and skills that strengthen a Singaporean-centric workforce, the qualifying salaries for Employment Pass and S Pass holders will be increased.”

Employment Pass qualifying salaries will increase from S$5,600 to S$6,000, with a higher benchmark for the financial services sector, rising from S$6,200 to S$6,600. S Pass qualifying salaries will also rise, from S$3,300 to S$3,600, and from S$3,800 to S$4,000 for the financial services sector.

This latest revision to qualifying salary benchmarks follows earlier rounds of tightening, including a similar increase in Employment Pass qualifying salaries at the beginning of 2025.

Source: HDB, URA, ERA Research and Market Intelligence

While this latest change may not have an immediate effect on Singapore’s rental market, which has seen year-on-year growth in volumes, it could still weigh on sentiment among foreign workers. Landlords and property agents may also see more cautious enquiries, with some tenants potentially re-evaluating their housing choices or delaying rental decisions.

However, this is expected to be a gradual adjustment in sentiment rather than a sudden shift. This is given the phased implementation timeline from 2027 and the continued need for foreign manpower in key sectors.

Overall, Budget 2026 reinforces a shift towards a more location-driven and skills-led property market, where infrastructure and workforce strategy increasingly shape housing demand patterns.”

For media enquiries, please contact:

Lisha Rodney

Public Relations Manager, ERA Singapore

Email: [email protected]

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