The government establishes an artificial intelligence park at Wei Yi: Analysis: It may boost local private housing demand | Lianhe Zaobao

With the government's plan to establish an Artificial Intelligence Park in One-North, real estate analysts are optimistic about this policy, believing it will further enhance the demand for private housing in One-North. Li Sidi, research director of Huttons, pointed out in an interview with Lianhe Zaobao that the establishment of the AI Park in One-North will help attract more talents, some of whom may come from overseas, which will drive up the demand for private housing. He also noted that as the government promotes local companies to adopt more AI technologies, it may also lead to an increase in the number of startups, which will consequently push rental levels higher. MOGUL.sg's chief researcher, Mai Junrong, stated in an interview that the establishment of the AI Park will undoubtedly have a spillover effect on the real estate market in One-North, as the park is likely to create more job opportunities, attracting more talents to move in and look for housing nearby. However, the extent to which the park will boost private housing sales and rental levels remains to be seen. "Currently, we need the government to announce more details about the AI Park project to carefully assess its specific impact on residential prices and rents in the One-North area." He also reminded that even if the AI Park attracts a large number of talents, it may not significantly boost the private housing market in One-North. "Because there is already a subway station in the area. In other words, people can take the subway from other areas to work in the park and do not necessarily have to live in One-North." Further Reading Accelerating AI Innovation: The government will build a large AI park in One-North Starting January 1, the salary threshold for employment passes will be raised to 6,000 SGD "And the rising housing prices may also deter those who want to buy or rent in One-North." Prime Minister and Finance Minister Huang Xuncai stated in the 2026 Fiscal Year Budget released on Thursday (February 12) afternoon, The government plans to establish an artificial intelligence park at Wei Yi to catalyze innovation and collaboration, transforming artificial intelligence initiatives into practical solutions suitable for businesses and public services. Analysis: Raising Employment Pass Salary Threshold Has Limited Impact on Rental Market Regarding the government's decision to raise the salary threshold for Employment Passes and its impact on the rental market, Mak Junrong pointed out that this policy will inevitably bring some shock, but the extent of the impact should be limited. This is because, as the government actively creates more jobs linked to artificial intelligence and advanced manufacturing, many specialists will flow into Singapore, supporting the local rental market. ERA President Zhu Yongqiang believes that the latest policy adjustment may affect the market sentiment of foreign employees, leading landlords and real estate agents to receive more cautious rental inquiries, and some tenants may reassess their housing options or delay their rental decisions. Prime Minister Huang stated in his budget announcement on Thursday that starting from January 1, 2027, the minimum monthly salary for new applicants for Employment Passes will be raised from SGD 5,600 to SGD 6,000; the income threshold for S Passes will increase from SGD 3,300 to SGD 3,600. In the financial services industry, which has higher salary standards, the minimum monthly salary for Employment Pass applicants will also be raised by SGD 400 to SGD 6,600; the minimum threshold for S Passes in the financial services industry will be increased by SGD 200 to SGD 4,000