Astonishingly high price for old and dilapidated apartment buildings reaching nearly 200 million VND/m2, rivaling the most luxurious condominiums in Hanoi

Old collective apartments with prices starting from 100 million VND/m2 are usually the first-floor units that can be used for commercial purposes, while the upper-floor units are priced at 60-80 million VND/m2 for residential purposes.


The bidding race of old communal apartments

Currently, on real estate channels, many old communal apartments in central districts of Hanoi are being sold for 50 – 80 million VND/m2. Some can go up to 100 million/m2, even 190 million/m2, higher than the luxury apartment segment.

For example, a ground floor communal apartment in Trung Tu (Dong Da, Hanoi) is being sold for 12.8 billion VND. The apartment is combined from two adjacent units, with the area on the certificate being 70 m2, which means each m2 is priced at about 180 million VND, more expensive than a luxury apartment.

According to the seller, the actual usable area of the apartment is 240 m2, and the location of the apartment is convenient for business and trading. If purchased, it can be used for business or for rent. The current rental price for business purposes is 40 million VND/month.

A ground floor communal apartment in Trung Tu – Dong Da is being sold for 12.8 billion VND.

Similarly, an apartment in Phuong Mai Street, Luong Dinh Cua, (Dong Da, Hanoi) is being sold for 5.45 billion VND. The area of the apartment is 65 m2, of which the area on the certificate is 28 m2, the remaining area is extra space. If calculated based on the area on the certificate, the apartment is priced at nearly 195 million VND/m2.

According to the seller, the apartment is located on Phuong Mai Street, close to many large hospitals, suitable for cafes or medical equipment businesses, clinics. Currently, the owner is renting it out for 25 million VND/month for business purposes.

Another apartment in the Ly Nam De commune area (Hoan Kiem, Hanoi) is being sold for 4.8 billion VND. Mr. Tu – the seller said that the apartment is located on the 5th floor in a 5-storey communal area, including 3 bedrooms, 1 kitchen, and 1 living room.

The current actual usable area is 115 m2, of which the actual area on the certificate is 40 m2, and the remaining 75 m2 is extra space. Therefore, if calculated based on the actual area on the certificate, this apartment is priced at 120 million VND/m2.

Also in Hoan Kiem, a communal apartment in Trang Tien ward is being sold for 3 billion VND with the actual area on the certificate being 35 m2, equivalent to over 85 million VND/m2.

According to the real estate agent, the apartment is located on the 5th floor of the communal area, the actual usable area is 45 m2, including 2 bedrooms, a living room, a kitchen, and 1 bathroom. The owner urgently needs money, so he is selling it for 3 billion VND, while other apartments in the same communal area are being sold for prices ranging from 3.2 to 3.5 billion VND.

Mr. Tuan Tu, a real estate agent for apartments and communal houses in Hanoi, said that the shortage of supply and high housing demand have caused not only apartment prices but also old communal apartments to increase in price.

According to a report by the Ministry of Construction, apartment prices in Hanoi continuously increased in the last 6 months of 2023. In the market, there are almost no projects in the affordable apartment segment, with prices below 25 million VND/m2, mainly in the mid-range apartment segment with prices ranging from 25 to 50 million VND/m2. In the outlying districts of Hanoi, the price increase was recorded from 3 to 4%. Specifically, Thanh Xuan district increased by about 3.5%, Ha Dong district increased by about 3.7%, Hoang Mai district increased by about 3.8%, and Nam Tu Liem district increased by about 4.1%.

In 2023, there were very few new apartment projects approved, and if approved for sale, they would have very high prices. In the outlying areas of Hanoi, such as Thanh Xuan district, Nam Tu Liem district, Hoang Mai district, secondary apartments also have prices of over 2 billion VND to more than 3 billion VND.

Many customers were looking to buy apartments, but after hearing the prices, they gave up because the prices were too high, even for apartments in outlying areas. Many customers have shifted to buying old communal apartments, Mr. Tu shared.

Prices are increasing but many people still choose to buy

According to real estate agents in Hanoi, many families with few members, in need and with limited finances of about 2 billion VND, have shifted to buying old communal apartments.

Old communal apartments priced from 100 million VND/m2 are often the ground floor ones, suitable for businesses, while upper floor ones are for residential purposes, priced at around 60-80 million VND/m2. With a price range of 60 – 80 million VND/m2 multiplied by the actual area on the certificate of about 25 – 35 m2, the price of one apartment will be around 1.5 – 2.5 billion VND, which is affordable for many people with actual housing needs. Old communal apartments also have extra space, and some have twice the extra space, so the actual area will be very spacious.

After working for 3 years, Mr. Huy Hoang has saved over 1.5 billion VND and borrowed money from his family to have about 2 billion VND to buy an apartment, ending the time of renting. However, after 3 months of searching, they gave up because apartment prices were too high, 2 billion VND was still far from the price of an apartment, even one far from the city center.

After listening to the advice and recommendations from friends and family, they decided to buy an old communal house in Thanh Cong, Ba Dinh with a price of 2.1 billion VND. Mr. Hoang said that the old communal apartment perfectly suits their finances, with the area on the certificate of the old communal house being 25 m2, but the actual area is about 60 – 70 m2, with two bedrooms suitable for a family of 3 people.

The location of the apartment is also convenient for Mr. Hoang’s family. Previously, when renting a house in Nam Tu Liem, it took him nearly an hour to get to work, but now it only takes him 15 minutes, saving a lot of commuting time, Mr. Hoang shared.

Similarly, Mrs. Cat Tuong’s family also could not find an apartment with a reasonable price, so they also shifted to buying a communal apartment. Mrs. Cat Tuong said that her family decided to buy an old communal apartment because the upcoming apartments will be renovated and rebuilt, so there will be compensation.

Recently, after the Hanoi Department of Construction issued a plan to renovate old apartments, nearly 100 investors have shown interest in renovating old apartments. Many districts in Hanoi have also gathered people’s opinions on detailed planning tasks for renovating and rebuilding communal areas. It is expected that in the near future, many old apartments and communal areas in Hanoi will be renovated.

Information about renovating old apartments and new policies from districts have attracted more attention to old communal apartments, which is also a factor pushing up the prices, Mr. Tu added.

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