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Private developers are betting that the dual-key apartment concept in Singapore is staying. -myp
Reico Wong
Tue, Nov 06, 2012
my paper
SINGAPORE - Trends in property development may come and go, but private developers are betting that if there is one concept in Singapore that is staying, it's that of the dual-key apartment.
And they are putting their money - and resources - where their mouths are to develop and market more of such home types that come with an adjoining studio apartment under a single strata title.
In fact, property developers here believe so strongly in the lasting appeal of the concept that not only are they all increasing the number of such units in their projects, but at least one of them is considering projects that are devoted entirely to dual-key units.
In such units, the main entrance leads to another two separate entrances - one leading to the main apartment, the other to the studio unit - with a shared foyer.
Each apartment comes with its own kitchen and bathroom. Multi-generational families are thus able to stay under the same roof while still enjoying some degree of personal space and privacy.
Otherwise, the adjoining studio apartment can be used as a home office or even rented out.
For owners of certain dual-key units, the wall between the two apartments can be knocked down so that the result is one large apartment.
Frasers Centrepoint Homes, which first went into the dual-key concept with its launch of the Caspian at Lakeside in 2009, said it is certainly not ruling out the idea of developing a project that will have only dual-key units.
Mr Cheang Kok Kheong, chief executive of Frasers Centrepoint Homes, told My Paper: "Given the high cost of housing and a strong filial- piety culture, Singapore has one of the highest co-residence rates in this region. The concept of multi- generational families living together will thus continue to be viable and popular."
He added that "it's thus feasible if the scale of the project is small", around 30 to 50 units, subject to its location.
"This could be a unique property, with its own special array of facilities and services for communal housing."
Demand for such housing is indeed spiking here. It has become so strong that developer MCC Land had to redesign the architectural plans for its executive-condominium project 1 Canberra to after the initial 95 units were snapped up within a month.
Mr Richard Nah, senior manager of MCC Land, attributed the overwhelming response to the many families in the neighbouring mature estates who want to upgrade to more spacious dual-key units, after getting used to living in rather- roomy flats.
Developers of Heron Bay in Upper Serangoon, which, in a bold move, made about 38 per cent of the 394-unit development dual-key - the largest number of such units in a single project launched to date - are also seeing the risk they took pay off.
Only 14 out of the 149 dualkey units are left. Heron Bay is jointly developed by CNH Investment, Evia Real Estate and Ho Lee Group.
Indeed, market response has been so positive that it has even prompted Frasers recently to roll out a brand called Trio to focus solely on dual-key units.
With only six out of its 266 dualkey units launched to date still available, Frasers is set to launch its eighth project with such units in the first quarter of next year.
Located in Tampines, about 20 per cent of the development will be dual-key units - the highest percentage of such units it has had in a single project.
CapitaLand Residential, whose developments The Metropolitan and The Interlace have dual-key units, noted that one key thing buyers most appreciate is the ability to use the rental from the adjoining studio unit to help cover the mortgage.
That said, most developers said that they still prefer to play it safe and not have a project consist entirely of dual-key units. Having a mix of unit types allows them to better cater to the diverse needs of buyers, they explained.
EL Development, which won the tender for a residential site in Sengkang Central recently, said it received requests from would-be buyers to include dual-key units, once it was announced that it had been awarded the site.
To cater to the demand, it will have about 120 dual-key units in its 810-unit condominium, La Fiesta.
This will be the developer's first dual-key project.
"For future projects, we are likely to include such units if the development is a mass-market project that is near MRT stations or key amenities," said Mr Lim Yew Soon, managing director of EL Development.
"We expect the popularity of dual-key units to continue as such homes satisfy buyers' need to own a home as well as invest in a second property, without having to pay a higher stamp duty. They also would not need to secure an additional loan for the second property."
Qingjian Realty's deputy general manager, Mr Li Jun, agreed that location is a key consideration when deciding on whether to incorporate dual-key units in a project.
"We would have to first assess the population profile and market demand for dual-key units in that neighbourhood when we plan future developments," he said.
"Dual-key units are larger in size than normal units and would thus cost more. It appeals to a specific group of buyers."
The developer has four dualkey projects in its portfolio, with the latest called Water Bay located in Punggol. Launched on Oct 19, only six out of the 34 dualkey units there are left.
Qingjian has limited the number of dual-key units to 10 per cent in each of its projects, but this could soon change.
