Dual-Key Condos – 4 Absolute Pros and Cons You Must Know

When dual-key condos first hit the market in 2009, not many would have guessed that dual-key condos would redefine Singapore’s property market. 

Since then, developers have become aware of the value of the dual-key condo concept and launched numerous projects that feature dual-key units.

Unlike the usual condo units that we are so familiar with, dual-key condo units comprise two separate living spaces connected by a shared common space. 

With dual-key condo units, homeowners essentially have two self-contained living spaces that share a single address.

Compared to regular condo units with the configuration of the same bedroom type, dual-key condo units are generally 3% to 5% bigger in terms of total floor area.

This unique configuration is designed to attract certain groups of property buyers. 

The first would be appealing to multi-generational families looking to live under the same roof while retaining a certain level of privacy.

The second would be property investors looking to rent out part of their property for revenue but do not have the financial liquidity to purchase the 2nd property at this point. 

In a dual-key condo, the larger unit is known as the main unit while the smaller unit is known as a sub-unit. 

The main unit is what you would expect from any condo with a similar room type, the only difference being a shared foyer that connects the sub-unit. 

The sub-unit in the dual-key condo concept is often built as a studio that is parted from the main unit to make it an independent living space. 

More often than not, the sub-unit has its common area, kitchen, and toilet so that it is self-sufficient on its own. 

Let’s have a look at the upsides of owning a dual-key condo unit of your own.

As dual-key condo units are configured such that the main and sub-unit are connected, it is legally treated as a single property.

You essentially get two properties for the price of one. 

With that said, buyers also do not have to pay any Additional Buyer’s Stamp Duties (ABSD) for the “additional” sub-unit.

All the more so with the increase in ABSD yet again in April 2023, local buyers have to fork out an additional 20% for their 2nd property and foreign buyers have to pay an additional 60%.

This created an exponential outburst in demand for dual-key condo units from local and foreign property buyers alike.

Let’s suppose you have a budget of $2 million, and you’re looking at purchasing two condo units. 

One is a $1.1 million two-bedroom unit for own stay and a $900K unit for rental yield. 

Presuming you don’t own any other property, you’ll have to incur 20% in ABSD for the second property. That amounts to an additional $180K for ABSD alone. 

The alternative would be to purchase a dual-key condo unit and you’ll be able to avoid paying the ABSD.

Dual-key condo units are a prime choice if you are looking for an investment unit with great rental opportunities.

Under normal circumstances, to become a landlord, you will need to either:

• Stay in the unit where you rent out one of your rooms and share the living space
• Meet the minimum occupation period (MOP) of 5 years before renting out the whole unit

For a unit with the dual key concept, you can stay in and rent out your sub-unit without compromising your privacy. 

Instead of renting out a room, your tenants will have access to a separate living space, toilet, and kitchen amenities.

Not just that, you also won’t have to compromise on privacy or your own living space.

After all, the sub-unit you are renting out is built and designed like a separate unit. 

You do not have to worry about ‘living with a stranger or having to put up with each other’s living habits.

If you’re looking at getting an investment property for rental yield but do not currently have the means to get a 2nd property, dual-key condos can be a good choice.

Like every decision made, there’s bound to be something you have to forsake. Let’s have a look at the downsides of owning a dual-key unit.

Due to increasing demand, some developers price dual-key units at a premium.

They control the supply as they know full well that dual-key units are highly sought after by the niche market.

That being said, it signifies that you might have to fork out more for a dual-key as compared to regular condo units with the same bedroom type.

As every project is different, buyers should do a comparative market analysis to determine if the price premium is justified. 

There are many factors to consider such as location, developer reputation, amenities, accessibility, and so on. 

This is especially important when buying dual-key units for investment purposes. 

You can save on this hassle by finding a committed property agent to do the CMA on your behalf to ensure that you get the best buy.

As mentioned earlier, dual-key units are built to appeal to a specific segment or niche of buyers.

While it may be attractive to multi-generational families and investment buyers; there’s a majority who do not fall into said categories.

Couples who do not live with their parents, and investors looking to purchase a small unit, are two types of buyers who will not find dual-key units appealing. 

Buyers in other segments mostly deem dual-key unit configuration as a waste of space and are not justifiable for its premium pricing.

It might present a hurdle when you’re trying to sell your dual-key unit to the resale market in the future.

Because right off the bat, your buyer pool will be restricted to a niche market when you want to sell your dual-key unit.

Pro tip: If you still want to buy a dual-key condo that will be easier to sell later on, choose one that doesn’t come with a separate kitchen so that the sub-unit looks like another junior suite or studio.

But do note that doing so will reduce the demand for the sub-unit to prospective tenants who are looking for a unit with a separate kitchen and it might impact your rental yield.

There’s no one size fits all and a property purchase should align closely with your goals.

With all that being said, it brings up the question: Should you buy a dual-key unit?

Ultimately, dual-key units are a niche unit type, where condos are concerned.

If you want to collect rent and you do not have the cash flow to purchase another unit, or you are keen on multi-generational living, a dual-key unit can be the ideal solution.

For the former, keep in mind that there are many factors to consider when purchasing a dual-key unit for investment:

• Is the project in an area with high rental demand?
• Does it have essential amenities in its proximity?
• Is it easily accessible with MRT stations or bus stops?

As mentioned earlier, you should seek the advice of a committed real estate agent when deciding so you can be presented with the relevant information. 

Dual-key condos have indeed brought revolution in the Singapore property market after their inception in 2009. They offer unique advantages and considerations for both homeowners and investors.

It is important to comprehend the structure and advantages of dual-key condo units to make more appropriate decisions when it comes to the purchase of real estate.

Dual-key condos are a contemporary way of dwelling where two independent units are linked to one common area.

This configuration meets the needs of multi-generation families living together but still wishing to have their own space, as well as investors who are ready to rent out an apartment without buying a second property.

Another benefit of dual-key condos is that they do not incur ABSD. Since these units are legally considered as one single property, buyers can save on ABSD for the second sub-unit, especially when property prices and ABSD rates continue to soar.

Renting out a dual-key condo offers financial benefits without sacrificing privacy.

Unlike normal arrangements of room rentals where landlords live together with tenants, dual-key units enable the landlords to rent the sub-unit as a separate unit from the main unit, thus giving both the landlords and tenants their own space.

Nevertheless, the following are some of the drawbacks that should be considered when buying dual-key units.

They may be relatively expensive in terms of cost per unit area due to market conditions and thus unattainable by some people.

Also, the sale of dual-key units in the future may be difficult since they are products that cater to a specific market, thus limiting the number of interested buyers in the property.

Finally, it can be stated that purchasing a dual-key unit depends on personal objectives and fiscal capabilities.

They are suitable for investors who want to get rental income and families who want to accommodate multi-generations.

Speaking to a professional real estate agent can be beneficial in the case of getting advice and assistance in the case of ownership of dual-key condos.

The prices for the dual-key condo in Singapore may differ significantly depending on the location, additional facilities, and the company that is involved in the construction of the building.

Some of the best dual-key condos in Singapore include the following; Parc Clematis, Treasure at Tampines, and the Florence residences.

Here is a list of dual-key condos in Singapore that are known for their quality and appeal:

• Parc Clematis

Parc Clematis is situated in a relatively established estate of Clementi and, as such, features dual-key units with contemporary facilities and easy connectivity to transportation and schools.

• Treasure at Tampines

Treasure at Tampines is an executive condominium located in the eastern part of the island and the development offers dual key units to families and investors who are in search of large homes and recreational amenities.

• The Florence Residences

This new project in Hougang consists of dual-key apartments with creative layouts and accessibility to parks, shopping centers, and transport links.

• The Woodleigh Residences

The Woodleigh Residences, located at Bidadari, offers dual-key units in an integrated development with retail, food and beverage, and recreation facilities.

• Jadescape

Designed by award-winning architects, Jadescape is a development located in the Bishan area which consists of dual-key apartments with smart home facilities as well as a breathtaking view of the city skyline.

• The Antares

Located at Mattar Road, The Antares has dual-key units intended for a contemporary lifestyle with access to schools, shopping centers, and MRT stations.

• The Alps Residences

The Alps Residences is situated in Tampines, and it comprises dual-key apartments that are perfect for families and investors seeking large and convenient units.

• The Watergardens at Canberra

This new launch in Sembawang has units with dual key features and offers its residents greenery, parks, water frontage, and walking promenades as well as different transport options.

• The Clement Canopy

Located at Clementi, The Clement Canopy offers dual-key apartments surrounded by greenery with amenities such as recreational facilities and schools within reach.

• The Gazania and The Lilium

These sister developments in Bartley have dual key units ideal for premium living with a well-designed landscaped garden, privacy, and convenience of interconnectivity.

• Parc Clematis

Parc Clematis is situated in Clementi and it has dual-key units with contemporary architectural styles and amenities that include facilities like a swimming pool, tennis court, gym, function room, and BBQ area.

• Rivière

Located in the heart of Singapore, on the banks of the Singapore River, Rivière offers dual key units with stunning riverfront views and an array of luxurious facilities for a truly luxurious lifestyle in one of the most sought-after addresses.

• Avenue South Residence

Located in the thriving Outram area, Avenue South Residence features dual-key units that offer stunning city views and easy access to commercial and recreational districts.

• Amber Park

Located in the dynamic East Coast area, Amber Park has dual-key apartments with resort amenities and easy access to coastal beaches, parks, and restaurants, providing residents with a peaceful but convenient lifestyle.

With more and more people in Singapore showing interest in owning a dual-key unit, developers have come up with various designs and facilities in an attempt to cater to the market’s diverse needs and investment strategies.

Prospective buyers and investors can explore these options to find the dual-key condo that best suits their needs and aspirations.

There are other factors to look for when searching for a dual-key condo in Singapore than just the cost.

Other aspects include the unit layout, additional facilities, credibility of the developer, location of basic facilities such as schools and transport terminals, and even the projected rental return on the property.

Investing in a dual-key condo can be a strategic move for those seeking rental income or multi-generational living arrangements.

Nonetheless, buyers should undertake their research, seek the services of a competent real estate agent, and evaluate their ability to secure finance in the search for properties that will meet their needs in the long run.

The dual-key concept has indeed redefined Singapore’s property landscape, by providing numerous living solutions and investment prospects for the sophisticated clientele.

As the market evolves, new developments with innovative dual-key designs and amenities continue to attract interest from both local and foreign investors, contributing to Singapore’s vibrant real estate sector.