Why you should think twice about converting a HDB flat into a dual-key home?

I was surprised that The Business Times published an article "HDB flats can be turned into dual-key homes" on 16th August 2024.

With the rise of public housing prices in recent years and it being a hot topic, it is surprising to see the idea of maximizing rental for HDB flats being shared on a national media publication. The article touched on how there are some owners (singles in 40s and elderly homeowners) who have converted their HDB flats into a dual-key concept to rent out part or the whole unit. Though this concept of dual-key is not new and is already available and popular with private condominium owners, there are some key considerations if you are considering buying a public housing flat with the intent to convert it into a dual-key home. 1. Comfort of Space The article shared that even 3 room HDB flats, which range from 645 sqft to 740 sqft in size, can be converted into dual key units. This means that each dual key space is approximately 370 sqft in size and will probably come in an long odd shape.

If you are an owner occupier in one of this unit, you will need to question if the space and layout is suitable for your long term stay. At 370 sqft, it can be a pretty tight space with not much room for personal belongings.

Source: The Business Times

2. Noise Disruption The two units will be divided by a partition wall. There could be an element of noise from the neighboring tenant. This is a consideration if you are one who value peace and quiet at home after a day's work.

3. HDB Regulations HDB's mission, as stated on its website, is

"We provide affordable, quality housing and a great living environment where communities thrive"

https://www.hdb.gov.sg/about-us/vision-mission-and-values/vision-and-mission

If this trend of dual key HDBs gains strength, there is a possibility of

a. HDB prices increasing due to

i. the idea of renting out part of the unit to cover the monthly mortgage becomes appealing. ii. Some HDB buyers with an investor's mindset could have a longer timeframe in mind and keep the dual key HDB unit as a cashflow unit as part of retirement plans.

b. HDB rental prices increasing, which will have an impact on resale prices as well.

c. The living environment of HDB estates being disrupted with different mix of tenants. All the above goes against HDB's mission and in due time, they will be prompted to put in regulations to curb HDB dual keys from developing further.

Would you consider buying a HDB flat to turn it into a dual-key home?

Source: The Business Times

Source: The Business Times