Top 5 Romantic Date Spots in Singapore
Singapore, known for its stunning skyline and diverse culture, is a melting pot of romantic opportunities just waiting to be...
Read More
TLDR for “Dual-Key Condo: Analysing The Pros And Cons”
When considering dual-key condo units, it’s important to weigh the advantages and disadvantages. These units offer the benefit of no ABSD payable, privacy when renting out, and potentially higher rental yields. However, they can be more expensive per square foot, challenging to sell, and may not be suitable for a home office. Ultimately, the decision to buy a dual-key condo unit depends on your specific goals and circumstances, including rental demand, proximity to amenities, and comparable rental yields in the area.
Back in 2009, the dual-key condo unit was introduced to the market with the launch of Frasers Centrepoint Homes’ Caspian. Since then, developers have embraced the concept, rolling out multiple projects that incorporate this popular housing solution across Singapore. Among the latest launches featuring dual-key units are Enchante, Parc Clematis and Piccadilly Grand.
Dual-key units offer the unique advantage of providing two self-contained living spaces that merge together in one convenient entranceway and address
Dual-key condos provide an attractive option for several groups of property buyers. With a larger unit as the main unit, and a smaller unit – usually a studio – as the sub-unit, dual-key units are typically 3 to 5% bigger than a regular condo with the same number of bedrooms. For multi-generation families looking to live together but maintain their own privacy, or property investors and couples unable to purchase a second home due to affordability constraints, dual-key condos offer many benefits. However, like anything, there are also some drawbacks to keep in mind. Let’s explore the pros and cons of dual-key condo units.
Advantages Of Dual-Key Condo Units
No ABSD payable
Dual-key condo units may seem like two apartments side-by-side, but they are legally one single property. Therefore, buyers don’t need to pay any Additional Buyer’s Stamp Duty (ABSD) for the extra sub-unit!
An example layout of a dual-key condo unit in Singapore.
With Singapore’s government introducing a hefty ABSD hike in 2021, buying a dual-key unit could be a more appealing option for first-time homebuyers and those purchasing multiple properties. This is because a dual-key apartment allows you to avoid paying the ABSD which can be as high as 20% for Singapore Citizens who are buying a second home (30% for Permanent Residents and 60% for foreign buyers). Let’s say you’ve got a S$2 million budget and are deciding between two separate condos – a S$1.2 million two-bedroom for yourself and a S$800k one to rent out – and a dual-key unit. If you choose the former, you’ll be faced with an additional cost of S$136,000 in ABSD. But with a dual-key unit, you can skip paying the tax if it’s the first property you’re buying.
Renting out without sacrificing privacy
Dual-key units allow landlords to remain in their properties while renting them out, without compromising too much on their own privacy. Unlike regular condo units, tenants will have separate keys and individual access to the living space, bathrooms, and kitchen amenities – meaning you’ll never have to worry about running into them in your nightgown! With dual-key units, you can take full advantage of having as much personal space as you need.
Higher rental yield (compared to standalone studio units)
Rather than simply renting out a room in your unit, why not consider leasing out a sub-unit? Not only can this provide you with a greater degree of privacy, but it has also been seen to yield a higher psf rental rate than that of a standalone studio unit.
To illustrate this point, let’s take a look at Riverbank @ Fernvale – a development with dual-key condo units that has a current listing for a studio.
A studio of a dual-key unit at Riverbank @ Fernvale for rent.
- Rent: S$2,000/month
- Floor area: 250 sq ft
- Price psf: S$8
At D’leedon, dual-key units measuring between 450 and 550 square feet are available for rent at a price per square foot of S$4, in comparison to other one-bedder units.
A studio of a dual-key unit at D’leedon for rent.
- Rent: S$2,000/month
- Floor area: 300 sq ft
- Price psf: S$6.67
At D’leedon, one-bedder units are being rented at a lower price per square foot than what we’ve seen for Riverbank @ Fernvale. These units are ranging from 650 to 750 square feet and are currently priced at S$4.83 per square foot. Therefore, a prospective landlord looking to invest in a dual-key condo unit can enjoy higher rental yields with less upfront cost – perfect for own-stay properties.
Disadvantages of dual-key condo units
Dual-key units can be more expensive per square feet
Doing your due diligence to determine the worth of a dual-key unit is a must – particularly if you’re buying one on the resale market. The price of these units can vary wildly – with some developers pricing them at a whopping 20 to 25% more than regular units with the same number of bedrooms. For instance, Kingsford Development charged a premium for their dual-key units at Kingsford Waterbay, yet Aurum Land didn’t do the same for the six dual-key, two-bedroom units at The Orient.
Dual-key units can be difficult to sell
Due to its appeal only to a select group of buyers, dual-key units can be tricky to sell. Most buyers – from young professionals to retirees – don’t have the need or want to rent out their unit and thus may not be too keen on investing in a dual-key configuration. If you’re set on purchasing one, we recommend choosing a unit without a kitchenette so it can be used as a second master bedroom or junior suite; this will still make it attractive to buyers, even if it may mean a lower rental return.
Not suitable as a home office
Using a unit in a dual-key property as a home office space may not be the wisest decision for entrepreneurs and business owners, unless they are flying solo or have a small team that won’t expand in the near future. Moreover, a license under the Home Office Scheme must be applied for, allowing for a maximum of two non-residents to be engaged in the business. Additionally, signage outside the property is not allowed, hence dual-key units may not be suitable for a home office.
Should you buy a dual-key condo unit?
If being a landlord on a budget or having your parents live with you in the future is your main goal, a dual-key unit could be the ideal solution; however, it’s still important to consider other factors, such as the rental demand in the area, proximity to essential amenities, and rental yields for comparable properties in the vicinity. Ultimately, dual-key units can be a great option, but it’s best to take into account all the variables.
More projects featuring dual-key units
New launch condos with dual-key units:
- Infini at East Coast (TOP: 2022)
- Jervois Treasures (TOP: 2022)
- Neu at Novena (TOP: 2023)
- Parksuites (TOP: 2023)
- Verticus (TOP: 2024)
- Forett @ Bukit Timah (TOP: 2024)
Resale condos with dual-key units:
- Highline Residences
- Seaside Residences
- City Gate
- Park Place Residences
- Kallang Riverside
- 120 Grange
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Can You Still Make Money from Older Freehold Condos in Singapore
TLDR While freehold condos might seem like a solid investment, the rise of new developments and aging buildings cast doubt...
Read More
Should You Be Upgrading To A Condo In 2023?
TLDR The 2022/23 property market is experiencing high prices, making it challenging for individuals to decide whether to upgrade their...
Read More
Learning Hard Truths in Property Investment: Timing the Market Can Hurt
TLDR The blog post delves into the complexities of market timing in property investment, highlighting the risks and challenges associated...
Read More
3 Steps to Protect Yourself from Real Estate Scams in Singapore
Lately, there has been an increase in scams related to real estate. Scammers are pretending to be real estate agents...
Read More
Tips for Choosing the Home of Your Dreams
TLDR Decoding the Singapore property market can be challenging, but understanding key factors like property size, location, and lease tenure...
Read More
Quick Guide for Condo Sellers: Timeline to Sell Condo in 2023
TLDR When selling a condominium in Singapore, understanding the critical steps is key. First, ensure you are not liable for...
Read More
Superstitions in the Real Estate Market : How Does it Impact Resale Value?
TLDR When navigating the Singapore property market, it's crucial to consider various superstitious beliefs that can impact your decisions. From...
Read More
The Lease Buyback Scheme Is A Strategy That Could Help You Retire Comfortably In Your HDB Flat
TLDR The Lease Buyback Scheme (LBS) trend among older Singaporeans is slowly gaining momentum, despite initial reluctance. The scheme allows...
Read More
Top 5 : Places to See Singapore’s Skyline at Night
Singapore, a bustling metropolis known for its stunning skyline, offers an array of vantage points to witness the city's architectural...
Read More
Learn the Essentials of Renting Property in Singapore as a Foreigner
TLDR Renting in Singapore offers various options for foreigners, such as HDBs, Condos, and even unique properties like heritage homes....
Read More
The Top 5 Impact Of Singapore’s Ageing Population On The Property Market And Investment Opportunities
Singapore's ageing population is having a significant impact on the property market and investment opportunities. The top five effects include:...
Read More
5 Factors Affecting A Property’s Resale Value
The real estate market is a complex and ever-changing landscape, with various factors influencing the value of a property. When...
Read More
Top 5 Dessert Places in Singapore
Singapore, a melting pot of cultures and culinary delights, is known for its mouth-watering food scene. From hawker centers to...
Read More
What If Sellers Back Out of a Deal?
TLDR When a seller unexpectedly withdraws from a property transaction before a contract is signed, they are legally allowed to...
Read More
Is it Better to Sell Your Newly Launched Condo Before or After Completion? Here’s What the Statistics Indicate
TLDR Determining the best time to sell a newly launched condo involves weighing the benefits of selling before or after...
Read More
Strategies for Overcoming ABSD and Acquiring Multiple Properties in 2023 (Revised)
TLDR When it comes to navigating the Additional Buyers Stamp Duty (ABSD) in Singapore, there are legal strategies available to...
Read More
Top 5 : Greatest Challenges That Investors Face In Singapore’s Real Estate Market
Singapore's real estate market is a dynamic and attractive investment landscape for both local and international investors. Known for its...
Read More
What Has Been The Most Significant Development In The Real Estate Market In 2022
TLDR In 2022, the real estate market saw significant interest rate hikes affecting home loan rates. Despite concerns, the market...
Read More
How to Avoid Forfeiting Your Security Deposit: A Guide to Your Rental Property
TLDR When bidding farewell to your rented property, ensure the safe return of your security deposit by: Regular Aircon Servicing:...
Read More
