On May 8, the People's Committee of Dong Da District (Hanoi) held a conference to collect opinions from agencies, organizations, individuals and communities related to the detailed planning project for the renovation and reconstruction of Vinh Ho and surrounding apartment buildings at a scale of 1/500, in the two wards of Thinh Quang and Trung Liet.
Accordingly, the project has a research scale of nearly 22.5 hectares with a population of more than 14,000 people. The principle of reconstruction is based on the boundary of the old apartment complex, ensuring the resettlement of all existing residents without increasing the population.
The 40-storey resettlement housing fund will be arranged according to each group of residents, ensuring to serve the current population. The average area of each resettlement apartment is about 70m2, the compensation K coefficient ranges from 1.5 to 2 times depending on the floor. It is expected that the project will be announced and receive comments within 30 days.
Ms. Nguyen Anh Tuyet (73 years old, resident of room 107B2, Vinh Ho apartment complex) said that the building where she lives was built more than 40 years ago and is currently seriously degraded, affecting people's lives.
"We really hope the project will be implemented soon. However, compensation must be reasonable and the new apartment should have a price suitable for people's income," Ms. Tuyet shared.
Mr. Nguyen Phu Tuyen (65 years old, living in room 105B3, Vinh Ho apartment complex) also agreed that this is the right policy, meeting the wishes of the people.
Mr. Tuyen hopes that the life in the new place will be really better. Compensation prices need to be reasonable and there needs to be a financial support policy for people when buying new apartments.
In addition to consensus, many residents are also concerned that information about renovation planning could cause prices of old collective apartments to skyrocket, as has happened in Thanh Cong, Kim Lien or Nghia Tan areas.
Currently, the price of some collective apartments in Vinh Ho has reached over 100 million VND/m2 - equal to the price of luxury apartments, although these apartments have been used for decades.
For example, an apartment with a usable area of 60m2, but the area on the red book is only 20m2, and is being advertised for sale at 2.88 billion VND - equivalent to about 115 million VND/m2 calculated according to the area of the red book.
Another house with a usable area of 50m2 but a red book area of 40m2 is being advertised for sale at nearly 3.6 billion VND - nearly 93 million VND/m2.
The common point of old collective apartments is that they are often expanded, however, the legal area recorded in the red book is still limited.
Talking to PV of Lao Dong Newspaper, Mr. Do Van Thach - General Director of Dova Land (real estate transaction center in Hanoi) - said that old collective apartments still maintain high value thanks to two main factors, including prime location and clear ownership.
Most of the collective housing areas are located in central areas, near schools and hospitals, making them very convenient for living, Mr. Thach analyzed.
In addition, these apartments are often granted red books - an important legal factor that buyers are interested in. Many investors are also buying old collective apartments with the expectation of benefiting from renovation and compensation policies when these housing areas deteriorate and are subject to reconstruction.
