According to Lao Dong reporters, although they intended to buy old apartment buildings in Dong Da and Cau Giay districts (Hanoi), many investors were forced to "turn around" quickly because the quality of the construction was degraded and the cost of upgrading and renovating was high.
Ms. Nguyen Thi Lan (40 years old, living in Dong Da district) said that many old collective houses in Kim Lien and Trung Tu that have existed and been in use for decades are being sold at prices equal to those of apartments in the inner city.
Not only that, what surprised Ms. Lan was that these apartment buildings are often small in size, with degraded infrastructure, but are being sold by their owners for 70-120 million VND/m2.
Although she wanted to buy a house at the end of the year, Ms. Le Ngoc Minh (working in Cau Giay district) had to leave when a broker took her to see the current condition of the Nghia Do apartment building, which was advertised for sale at 2-3 billion VND/unit.
"When the broker took me to see the old apartment buildings in Nghia Do and Nghia Tan (Cau Giay District) that were being sold for 2-3 billion VND/unit, I had to give up the idea of buying an old apartment building because the space was stuffy and damp," said Ms. Minh.
Referring to this content, Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - commented that with a budget of 2-3 billion VND/apartment, owning an apartment in the inner city is not easy, especially in the central districts. Therefore, many people with limited finances will have to accept living in a dilapidated, degraded living space in exchange for a central location convenient for living and working.
According to Mr. Nguyen The Diep, the biggest advantage of apartment buildings is their prime location, full of amenities, and convenient transportation. If the house is on the first floor, it can be rented out for good business. Although the area on the red book is often small and narrow, these houses are actually expanded to increase the usable area.
Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association (Vars) - assessed that the reason why the old apartment segment in Hanoi has recently attracted many people's attention is because it is located in central locations of Hanoi, sought after because of the scarce supply of housing and new apartment projects.
However, Mr. Nguyen Van Dinh said that buyers of old apartment buildings also need to pay attention to the actual area and the expansion area when finalizing the purchase. Because during their stay, many households have expanded their "tiger cages and bird cages" by tens of square meters with many risks.
The expanded area of a collective house is usually not included in the area granted in the red book, and is not considered when transferring or in compensation when the collective house has to be demolished or rebuilt.
