Apr 10 2013, 04:19 PM
We see this term ‘dual-key’ in many new launches now as one of the unit types offered in many new launches today, including a couple of Executive Condominiums.
What is dual-key apartment?
Dual-key apartment essentially is a single strata-titled unit with a studio apartment adjoining a regular condominium apartment (ranging from 2 bedroom apartments to 4 bedroom apartments), sharing the same foyer but separate doors. The studio apartment and the regular condominium apartment are meant to be able to function as a house independently, such that both apartments have their own Kitchen, bathrooms, separate doors etc.
Following the ‘shoebox’ apartment trend, dual-key units seems to be the next ‘in’ thing in the real estate industry in Singapore. The growing popularity of the dual-key concept in condominiums these days are understandable. While the ‘shoebox’ unit offers an opportunity for buyers to own a unit located in the prime districts yet at an affordable quantum, dual-key units allow flexibilities.
Essentially dual-key units are all about possibilities and flexibilities. You can:
1) Live with your parents while you maintain certain comfort level of privacy for you and your family. This is especially important for children who wants to ‘keep an eye’ on their old-aged parents.
2) A private nest for your grown child, while still staying in close contact.
3) Rental opportunity. You can choose to either rent out the studio apartment while you stay in the regular condominium apartment, or you can choose to rent out ‘both’ apartments, while you pay for the price of one! You can also keep an eye on your tenant if you live in the same dual-key apartment. Because dual-key units are single titled units, you do not have to worry about Additional Buyers’ Stamp Duty or securing an additional bank loan where MAS new restrictions kick in. It will be that you are buying one house, but you reap the benefits of two!
4) You have a choice to remove the partition wall of the dual-key apartment to have a bigger unit when your family size grow.
5) The studio apartment could be your private home office, separated from your residences.
6) The attached studio apartment can be anything basically, limited only by your creativity.
Most new launches we see these days offers dual-key units, with 3 bedroom dual-key and 4 bedroom dual-key as the most commonly seen types of dual-key apartments. The sizes of these dual-key units are generally larger in size and thus will cost more in terms of quantum.
Some developers call these multi-generation units or inter-generation units, essentially it means the same thing.
Fisheye Viewpoint:
The dual-key concept may be more sustainable in the long term compared to the ’shoebox’ units due to our gradually aging population and unlike demand for ‘shoebox’ units may just be a property bubble, there will be genuine demands for grown children and parents wanting to stay together. It is a real situation that people faces these days where they have to shuffle to and fro just to visit their parents or just to have dinner. The situation becomes particularly pressing especially when old-age parents have certain medical conditions that require care-taking or monitoring. Yet, not many have the financial ability to purchase two apartments within the same development just to stay close together enough. Such dual-key units are the solutions to these problems and considerations.
It is also an attractive option for amateur property investors where they may not have enough liquid funds to buy a second house for investment. Especially with today’s government stringent measures on the property market, such as the Additional Buyers’ Stamp Duty (ABSD) and tighter loan-to-value ratio when securing bank loans. Dual-key again is the solution as it still remains a single strata titled property!
Although the overall price tags for such dual-key units are higher due to the larger size, it is still significantly lower than purchasing two separate units. The only down side is probably you would not be able to sell off part of the apartment like two separate units.
One thing to note though, developers are fast latching onto the ‘dual-key’ trend, however, to maximize profits, they are building 3 bedroom dual-key units at 1,300 sqft. So I will advise that you watch out for ‘mickey mouse’ dual-key units that may not be as comfortable to live in as you want it to be.
You have to get prepared that your regular 3 bedroom condominium unit is going to be even smaller than a true-blue traditional 3 bedroom unit. Take a 1,300sqft dual-key unit for example, 500 sqft goes to the studio apartment (which is the size of a ’shoebox’ unit), the 3 bedroom unit will be 800sqft, which is really tiny for a 3 bedroom.
For this model to work according to the above discussed principles, it will not be advisable to buy a small dual-key unit.
http://fisheyer.com/2012/12/02/dual-key-apartments/
Vina Versatile Homes at Cheras South
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