According to Lao Dong reporters, in the context of the real estate market in Hanoi experiencing strong fluctuations, old apartment buildings in central districts are being sold by their owners at prices of more than 100 million VND/m2.
This makes many investors "startled" about the rapid change of the real estate segment in the area.
Ms. Nguyen Thi Nga (36 years old, living in Cong Vi ward, Ba Dinh district) shared that many old collective houses that are decades old in Ba Dinh district, which used to be the residence of low- or middle-income families, are now being sold at prices comparable to luxury apartments.
What surprised Ms. Nga was that these collective houses are often small in area, the infrastructure has degraded but the selling price is not cheap. There are even old collective houses being sold by the owners for up to 100-150 million VND/m2, because they are located near commercial areas, services, and administrative agencies.
Similarly, Ms. Le Thi Minh (40 years old, living in Khuong Trung ward, Thanh Xuan district) intended to buy an old apartment in the inner city with a budget of about 2-3 billion VND.
Ms. Minh shared that when the broker took her to see some old apartment buildings in Dong Da district that were being sold for more than 100 million VND/m2, she and her husband had to "turn around" quickly because the space was cramped, and when they moved in, it would take a lot of time and money to repair and renovate.
Explaining the reason why the price of old collective houses in Hanoi is increasing, Mr. Nguyen The Anh - Vice President of Hanoi Real Estate Club - commented that in the recent past, the old apartment and collective house segment has been almost forgotten because there have not been optimal plans for renovation.
However, after changing some renovation policies, many investors have begun to pay attention and look to buy for profit, waiting for renovation to receive high compensation.
Especially with old apartments and collective houses located in central districts of Hanoi such as Ba Dinh, Dong Da, Thanh Xuan or Cau Giay, buying and selling and liquidating are often very easy and quick, causing house prices in these areas to often be pushed up very high.
Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association (Vars) - informed that many old collective apartments located in "golden land" locations in the center of Hanoi are being sought after recently due to the scarce supply of new housing.
However, Mr. Dinh said that buyers also need to pay attention to the actual area and the expansion area when buying old collective houses. During their stay, many households have expanded tiger cages and bird cages of tens of square meters, causing great risks and reducing the value when buying, selling and transferring.
