Mini apartments are out of date after the fire in Hanoi?

The website Batdongsan.com.vn has just updated real estate market data for the first 8 months of 2023. Accordingly, the demand for real estate searches nationwide decreased by 33% compared to the same period in 2022, and the number of real estate listings also decreased by 48%.

However, the demand for renting and buying apartments under 35 ^m2 , mini apartments tend to increase, such as in Hanoi increased by 11% and in Ho Chi Minh City increased by 24%. However, after the recent mini apartment fire in Hanoi, this market has been affected a lot.

Mini apartment building in fire in Hanoi (photo courtesy)

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, commented that the next phase will be very difficult for mini-apartment businessmen as well as buyers and renters of this type, because the authorities will review, not only in Hanoi but also nationwide. This has caused many mini-apartment owners to temporarily suspend their business because they have not complied with strict regulations on fire prevention and fighting, and at the same time, it takes time and money to repair and meet the conditions for operating the apartment building.

Tenants who have reached the end of their contract will tend to look for a new place if their old place is not safe. However, the number of affordable apartments that meet current security and safety criteria is very small, so the rent will increase. "For those who buy mini apartments, they are in a dilemma, it is difficult to sell but they do not have a red book to live in and are always worried about incidents," said this expert.

Mr. Nguyen Quoc Anh suggested that people who own mini apartments should set up a management board to discuss and request the homeowner to maintain and repair the apartment, to ensure hygiene, fire safety, and prevent emergency situations...

Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, predicts that in the near future, the supply of mini apartments will likely decrease because investors will find it difficult to obtain construction permits and open for sale when management and inspection of fire prevention and fighting and rescue are stepped up.

In addition, the cost of construction and operation of apartments will increase according to the design and acceptance and maintenance work in accordance with fire prevention and fighting regulations. In the context of limited supply, high demand and increasing costs, apartment prices in general are unlikely to decrease.

For those who want to rent or buy an apartment to live in, Mr. Tuan said that instead of looking for mini apartments in densely populated areas, they will look for social housing projects and apartment projects far from the center but ensure safety, and the price is also cheaper than inner-city apartments.

"However, the supply of these types is not abundant, so the selling price may gradually increase as demand increases. Small apartments from reputable investors with full fire prevention and fighting inspection will attract more interest," Mr. Tuan commented.

Source: https://nld.com.vn/kinh-te/chung-cu-mini-het-thoi-sau-vu-chay-o-ha-noi-2023091916080797.htm