According to Lao Dong reporters, located in prime locations, some apartments in the Vong Duc apartment complex (Hoan Kiem district, Hanoi) are being sold at expensive prices despite their serious deterioration.
Recently, on a real estate trading page, there is information about selling a 1st floor apartment on Vong Duc street, area 30m2, frontage 3m with price 9.8 billion VND, equivalent to more than 326 million VND/m2. This information attracts the attention of many investors.
The person posting the ad said that this old apartment building has a red book in the owner's name, the buyer can conveniently do business, trade or rent out the premises for 25 million VND/month.
According to Lao Dong reporters, the No. 11 Vong Duc apartment complex (also known as the old Dien Co apartment complex), built in the 1960s, is currently seriously degraded but the real estate value here is still increasing due to its prime location. Notably, many small apartments here are being sold for 100 - 150 million VND/m2 or more.
Mr. Tran Hoang (real estate broker in Hanoi) informed that during the use, many collective houses in Vong Duc were expanded by the residents, expanding the usable area. Then they were put up for sale at prices comparable to luxury apartments, ranging from 100-330 million VND/m2, depending on the location.
Many real estate experts say that the fact that many old collective houses are becoming a popular segment is due to their location in the center of the capital. In addition, the supply of new housing is increasingly scarce, so the demand for housing types is increasing, especially in inner-city districts.
Referring to this content, Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - commented that in the past, old apartment buildings were not pushed up in price, because the city's renovation projects had lasted too long and were constantly behind schedule.
However, recently, after Hanoi City determined to promote the renovation and reconstruction of old apartment buildings, along with an attractive compensation, support and resettlement plan on site that was put forward for residents' opinions, the apartments here are receiving the attention of investors.
According to experts, many old apartment buildings in Hanoi are being classified as being soon renovated and rebuilt, and have detailed plans, so they have a better chance of being implemented soon, speeding up the progress.
