According to Lao Dong reporters, located in the middle of the "golden land" area of central Hanoi, many Vong Duc apartment buildings are being sold by their owners at sky-high prices despite their seriously degraded condition.
Mr. N.V.T (living in Hanoi) is selling a 30m2 apartment building in Vong Duc on the first floor for 9.8 billion VND, equivalent to 326 million VND/m2.
This person shared that Vong Duc Street is a central street, with a prime location connecting Hang Bai Street to Ngo Quyen Street (Hoan Kiem District, Hanoi). Notably, this old apartment building has a red book in the owner's name, the buyer can conveniently do business, trade or sublease the premises for 25 million VND/month.
Similarly, Ms. Nguyen Thi Sam (living in Hoan Kiem district, Hanoi) shared that, in addition to the degraded state, residents living in this apartment complex still have to use shared toilets and bathrooms.
According to Ms. Sam, during the process of use, many collective houses in Vong Duc were expanded by residents, expanding the usable area and then put up for sale at prices equal to luxury apartments, ranging from 150-330 million VND/m2, depending on the location.
However, according to Lao Dong reporter's research, although the selling price has been pushed up quite high, there is still no data on the actual transaction volume of the old apartment segment in Hoan Kiem district (Hanoi).
Some real estate experts also note that it is not uncommon for homeowners to advertise very high prices to attract the attention of those in need, or to create a virtual price level.
However, Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association (Vars) - also mentioned that in fact, many old collective houses have become "hot" products because they are located in central locations in Hanoi. In addition, the supply of new housing is scarce, so the demand for housing types is increasing, especially in inner-city districts.
This expert also noted that there is information that Hanoi is renovating and rebuilding old apartment buildings - a place with the potential to become a prime location, so buyers need to consider carefully before spending money.
Referring to this content, Mr. Nguyen The Anh - Vice President of Hanoi Real Estate Club - said that in the context of the current scarce supply of new housing projects in the inner city, the price of old collective apartments is expected to continue to increase.
In particular, with old apartment buildings in central districts of Hanoi such as Dong Da, Thanh Xuan, Cau Giay, buying and selling and liquidating are often very easy and quick, this is also one of the reasons why housing prices in these areas are often pushed up very high.
However, experts also note that when buying and selling old apartment buildings, buyers need to pay attention to the actual area. Because, during their stay, many households have added tiger cages of dozens of square meters, reducing the value when the owner wants to transfer.
