Unexpectedly, the price of old apartment buildings is equal to that of luxury apartments.

Recently, many old apartment buildings with sky-high prices continue to be offered for sale on the market.

On online real estate brokerage channels, the selling price of old collective apartments in the central district is currently hovering at a high level of about 60-80 million VND/m2, with some apartments costing over 100 million VND/m2, higher than the mid- to high-end apartment segment.

For example, a 30m2 apartment on Kim Ma Thuong Street, Cong Vi Ward (Ba Dinh District) is being sold for 3.1 billion VND, or about 103 million VND/m2. This apartment has only 1 bedroom, located on the 1st floor, with a 3.5m frontage, making it very convenient for renting out for business.

Or a collective apartment on the first floor, in Hang Bong alley, Hang Buom ward (Hoan Kiem district) is priced at 3.3 billion VND, the area in the red book is 32.9m2, about 100 million VND/m2.

Also with a fairly high price is the apartment at 2 Le Phung Hieu, Trang Tien ward (Hoan Kiem district) with an area of 36.4 square meters for sale at 3 billion VND, or nearly 83 million VND/square meter.

Many old apartment buildings are priced the same as luxury apartments. (Illustration photo).

According to the seller, the apartment is on the 5th floor of the apartment complex, the area in the red book is 36.4m2, of which 33.7m2 is the residential area, the remaining 2.7m2 is the balcony area. However, the actual usable area of the residential part is about 43m2, including living room, kitchen, 2 bedrooms, 1 bathroom.

An apartment in Ly Nam De apartment complex (Cua Dong ward, Hoan Kiem district, Hanoi ) also caused a shock when it was advertised for sale at a price of 120 million VND/m2.

This apartment has a book area of 40 m2 including 3 bedrooms, 1 kitchen, 1 living room and is sold for 4.8 billion VND.

The seller said that the apartment is located on the 5th floor of a 5-storey apartment building, with a current usable area of 115 square meters, of which the actual area on the book is 40 square meters, and 75 square meters is the expansion area.

Thus, if calculated according to the actual area on the book, this apartment costs 120 million VND/m2.

Another apartment on Le Thanh Tong Street, area 50 m2 is being sold for 3.1 billion VND. Contacting the seller, we learned that the actual selling price is 3.5 billion VND, area 50 m2 including 2 bedrooms, 1 living room, 1 kitchen, 1 bathroom.

According to the seller, the apartment is located on the 2nd floor of a 5-storey apartment building, the actual area on the book is 30 m2, 20 m2 is the extension. If calculated according to the actual area on the book, this apartment is priced at 116 million VND/m2.

Why do old collectives attract customers?

Despite the high price, old apartments are still sought after by many people.

Because of its central location, many apartment buildings, although degraded, are still sought after. (Illustration photo).

According to Mr. Do Minh Tuan ( Hung Yen ), with a capital of about 2 billion VND, he intends to buy an old apartment building in Dong Da area to "settle down" in the city after many years of renting.

Mr. Tuan said that although the apartment building was somewhat run-down, it was convenient for commuting to work and taking his children to school. At the same time, with such a price, Mr. Tuan had almost no other choice in the central area.

Similarly, Ms. Nguyen Mai Lan (Thuong Tin, Hanoi) also said that after 3 years of living in an apartment in Hoai Duc (Hanoi), she had to sell and move to buy an old apartment in Thanh Cong apartment complex.

The current house that Ms. Mai Lan's family bought for 2 billion VND has a land area of 30 square meters. Although the area is small, the location is central, close to work and close to many good schools for the children to go to.

She said that with 2 billion, she can only buy an apartment far from the center, every day she has to spend 2-3 hours to go to work. Besides, when living in an apartment, her family has to pay additional management fees, maintenance fees... which increases the family's monthly living expenses.

According to Ms. Do Thu Hang, Senior Director of Savills Hanoi Consulting Services, the market is witnessing an imbalance between demand and supply of apartments in Hanoi, especially for products in the affordable segment. Therefore, collective apartments with moderate areas located in the inner city are an option for small families.

Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, assessed that the reason why many old apartment buildings have become "hot" is because they are located in "golden" locations in the center of Hanoi, sought after because of the scarce supply of new housing.

However, Mr. Dinh said that buyers also need to pay attention to the actual area and the expansion area when buying this type of property. Because during their stay, many households have expanded their "tiger cages" by tens of square meters, causing many safety and investment risks for buyers.

In fact, in old collective apartments, the actual built area is often very small, and during the living process, households expand the area. Therefore, these expanded areas are not included in the area granted in the red book, and are not considered when transferring or in compensation when the collective housing area has to be demolished and rebuilt. Therefore, even though there is information that the city is renovating and rebuilding old collective housing, which has the potential to become a "golden" location, buyers still need to consider carefully before buying.

Chau Anh

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