Dual Key Units

What are dual key units? In 1986, the HDB introduced units configured as a studio unit plus the main flat. The intention was to encourage multi-generational families to live under one roof. In 2009, Caspian Condo was the first to introduce the concept to the private residential market. Today, dual-key units can be found in both private and executive condos.

The Straits Times in this article "Developer 'still keen'on dual-key units" published on May 20, 2014 stated that the proportion of large residential projects offering dual key units has risen over recent years: 2011: 3.4%, 2013: 7.5%.

What do dual-key units offer? Basically a dual key layout has two subunits sharing the same foyer. The subunits can be self contained or consist of one full unit with an attached room. For couples, it offers a way to live next to your parents while maintaining some privacy. For others, one sub-unit can be used to generate rental income without loss of privacy.

According to the same article, dual-key units command a premium but this has dropped from 16% at its peak in 2012 to 12% max last year. The take-up rate has also dropped from 84% to 58%. Despite of these stats, dual-key units will appeal to young couples who would also like to be their parents or to investors who see such units as a way to generate another income or to help pay their property loans. Indeed, both units can be rented out to generate even more income. 

All potential buyers of any kind of property should first visit their banker and understand how much they can loan in the light of the TDSR cooling measure. This will help ground their expectations and narrow the range of properties or units that they can invest in. As previously mentioned in this blog: http://sgpropertysource.com/property-news/entry/one-in-three-home-buyers-do-not-understand-tdsr.html. 1 in 3 buyers do not understand the TDSR and its going to save them a lot of time if they make an upfront assessment of the maximum amount they can loan.

Some properties launched or to be lauched with dual key units include:

The Crest @ Tanglin

Coco Palms

RiverTrees Residences

Sunnyvale Residences

Guillemard Suites

Highline Residences

Liv on Wilkie

WhiteHaven

Bentley Residences

The Tembusu