According to Lao Dong reporters, many old apartment buildings in Hanoi with their current state of disrepair are being offered for sale by their owners at expensive prices.
For example, an old apartment building on Hang Bai Street (Hoan Kiem District) is being offered by its owner for 100-150 million VND/m2.
Accordingly, this house is located in a prime location, in the center of Hoan Kiem district, but residents living in the apartment complex still have to use shared toilets and bathrooms.
Similarly, a collective house on Vong Duc Street (Hoan Kiem District) with an area of only 15.4 m2 is being offered by the owner for 2.15 billion VND, equivalent to nearly 140 million VND/m2.
At Giang Vo collective housing area (Ba Dinh district), some apartments on the first floor are being offered for sale at prices above 100 million VND/m2.
Mr. Nguyen Xuan Linh (49 years old, living in Giang Vo apartment building, Ba Dinh district) said that many old apartment buildings with degraded and low humidity are being advertised for sale at prices equal to luxury apartments, exceeding 100 million VND/m2 because they are located on central streets of Ba Dinh district.
However, according to Mr. Linh, after many years of waiting, the apartment building is still "stuck" in compensation, renovation, and overall planning.
Many real estate experts analyze that the reason for the high price of old collective houses in Hanoi is their location in the center of the capital.
In addition, the high price of this segment is also due to the influence of apartment prices and real estate prices in the inner city in recent times. However, many opinions also say that it is not excluded that there are cases where collective house prices in central districts are being "inflated" into virtual prices, being advertised for sale at high prices.
Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - acknowledged that most old apartment buildings in Hanoi are in a state of severe degradation after decades of use, so buyers will have to spend a lot of money to renovate them.
In addition, these apartments are all expanded, but in reality, the area on the red book will be very small. Therefore, when the authorities rebuild the apartment complex, the difference in area outside the red book may not be included in the compensation and site clearance payment area. Home buyers need to pay attention to the above risks.
Mr. Mac Dinh Minh - Deputy Director of the Hanoi Department of Construction - commented that the implementation of work related to the renovation and reconstruction of old apartment buildings in Hanoi is still slow, not ensuring the set progress.
According to Mr. Mac Dinh Minh, some apartment buildings are currently not in accordance with the planning or areas with old apartment buildings planned as trees and parks. The planning sets a low target of 1-5 floors but the actual population exceeds, making it difficult to renovate and rebuild apartment buildings to attract investors due to limitations in height and population.
