Recently, on online real estate forums, there has been a lot of information posted, selling mini apartment buildings in Hanoi with prices ranging from 10-30 billion VND.
For example, a mini apartment building in Nhan Chinh ward (Thanh Xuan district) with an area of 100 square meters per floor is being sold by the owner for 22 billion VND. A mini apartment building in Lang Ha ward (Dong Da district) with 17 rooms is being sold for 10.8 billion VND.
The mini apartment building in alley 8 Le Quang Dao street (Nam Tu Liem district, Hanoi) with a usable area of 110m2 per floor, 9 floors, elevator costs more than 17 billion VND. According to the information for sale, the building has 28 closed rooms, the owner rents out all the rooms all year round, the third party's revenue is up to 1.4 billion VND/year.
According to Ms. Nguyen Thi Nga (selling a mini apartment building for 17 billion VND in Nam Tu Liem district), the mini apartment building has been equipped with a fire prevention and fighting system. Due to urgent capital needs, she is selling the entire building, although the monthly rental income here is still stable.
Ms. Nga added that in the market, many owners are selling a series of mini apartment buildings at cheap prices at the end of the year because they do not ensure fire safety.
Mr. Nguyen Viet Hoang (a long-time real estate investor in Thanh Xuan district, Hanoi) said that after a series of large fires, this type of mini apartment building gradually lost its position.
Many mini apartment buildings that do not have sufficient legal documents and fire protection systems are forced to be put up for sale at a loss at the end of the year due to a lack of tenants.
Meanwhile, the management agency is tightening the operation of mini-apartments, with buildings that do not ensure fire safety will have to be repaired. This makes many owners worried about having to spend more money to maintain during a time when business is down.
Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - commented that recently, mini apartments have developed strongly and brought great profits to investors, especially in the context of high housing demand.
However, after the fire prevention regulations were tightened, in order to maintain operations, investors had to spend a large amount of money on repairs and equipment investment to ensure standards, especially for buildings that have been built for many years, this renovation is extremely difficult.
Experts emphasize that many mini apartments in the inner city are forced to temporarily stop operating until they are repaired and completed due to insufficient fire prevention and fighting conditions. This seriously affects revenue and profits, forcing investors to sell their houses and hand over the “burden” to new owners. Therefore, investors interested in this segment need to research carefully before “putting down money”.
