Dual-Key Condo
(new & resale condos)
If you have no idea what dual-key condo units are, dual-key condo units are a new housing layout concept that has was only conceptualised by property developers from 2009 onwards and has been creating interest in the Singapore property market ever since. So what exactly is it about?
A dual-key condo is a type of condominium unit that has two separate entrances, allowing for two separate living spaces within the same unit. This can be useful for people who want to have a separate living area for guests, renters, or family members, while still having the privacy of their own living space. The two living spaces can be connected or separated by a door or wall, and they may have different floor plans and amenities. These dual-key condo units are divided into two sub-types, typically sharing a foyer and many of these dual-key condos come with a mini kitchen in one sub unit and a full kitchen in another larger unit.
It's also a great option for investors who wish to rent out one of the living areas while living in the other, or for those who want to live with roommates while still having the privacy of their own living space. After the government's decision to increase the Additional Buyer's Stamp Duty (ABSD) in an effort to cool the property market affecting all residential property acquisitions on or after 16 Dec 2021, we are seeing more and more savvy investor property buyers looking for dual-key condo units as more and more Singaporeans are priced out of owning dual properties.
While dual-key units may be priced slightly higher than regular condo units, they’re still much cheaper than paying the ABSD tax which may add up to a substantial amount. For example, a Singapore Citizen buying a second property for $1 million, for example, would need to pay $170,000 in ABSD, and remember this doesn’t include other fees like agent’s fee, BSD, etc.
The last few years has seen the growing popularity of dual-key units in the Singapore market becoming one of the hottest and most desired condo layout in the real estate market. In 2013, the government introduced an additional 7% stamp duty charge on local buyers who are purchasing their second property, the Additional Buyer’s Stamp Duty (ABSD). Although a dual-key condo effectively gives you two properties, on paper it still counts as a single unit so it doesn’t incur ABSD.
Home owners love this layout because it allows them to stay in the bigger sub-condo unit while renting out the smaller sub-condo unit without interfering in their lifestyle or privacy as Dual-key condo units have two separate entrances leading to two self-contained living spaces in both sub-condo units with their own exclusive living area, kitchen and bedrooms without the need to share.
Do dual-key apartments make good investment sense?
Investors love this layout because it is like buying two condo apts but only paying the additional buyers stamp duty for one property.
Dual Key new condo Singapore launch apartments are versatile in form and functionality. Comes with a main apartment and a studio unit perfect for big families who want to live under the same roof but with exclusive privacy, ideal for the housing needs of Singapore's growing 'silver' population.
Well known real estate professional Kiwi Lim from Huttons Asia said "Less than 10% of all condos in Singapore has dual key apartment units. Therefore, dual key condos will be very much in demand in future due to its rarity and buyers who want own "two condo units" without paying ABSD."
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