Supply has continuously decreased for many years, while real demand is increasingly high, causing not only new apartment prices but also old collective apartment in the central district of Hanoi also increased.
For example, one collective apartment at 2 Le Phung Hieu, Trang Tien ward (Hoan Kiem district) with an area of 36.4m2 for sale for 3.02 billion VND. According to the seller, the apartment is on the 5th floor of the dormitory area, the area is in the “red book”. is 36.4m2, of which 33.7m2 is housing area, the remaining 2.7m2 is balcony area. However, the actual usable area of the house is about 43m2, including living room, kitchen, 2 bedrooms, 1 bathroom. With a selling price of more than 3 billion VND, according to the area on the “red book”, each square meter of this old collective apartment costs nearly 83 million VND.
Can Community house Kim Ma Thuong street, Cong Vi ward (Ba Dinh district) with an area of 30m2 is for sale at a price of 3.1 billion VND. That is about over 103 million VND/m2. This apartment only has 1 bedroom, but according to the seller, the location is right on the first floor, the apartment frontage is 3.5m so it is convenient for business rental.
| Old dormitories have increased in price because of great housing demand. Photo: Nhu Y |
Also for sale at a price of up to 100 million VND/m2, a collective apartment on the first floor, in the alley of Hang Bong street, Hang Buom ward (Hoan Kiem district) is priced at 3.3 billion VND, area in red book 32, 9m2.
Talking to Tien Phong reporter, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, commented that the reason why many old dormitories have become “hot” goods is because they are located in “golden” locations in the center. The center of Hanoi is continuously increasing in price, sought after due to the scarce supply of new housing.
However, Mr. Dinh said that buyers also need to pay attention to the actual area and expansion area when buying this type. Reason: During the process of living, many households have expanded the “tiger cage” to dozens of square meters, causing many safety and investment risks for buyers.
Many opinions point out that the biggest risk for home buyers is that these expansion areas and “tiger cages” are not included in the area allocated according to the red book, and are not considered when transferring or in compensation when The dormitories must be demolished and rebuilt. In fact, from investors to people who want to buy to live in, they all see the potential of old dormitories when renovated into new apartments. However, when renovating or rebuilding old apartments still takes time to resolve, buyers still need to consider carefully.