If your goal is to buy a home for it’s resale value and the one you are thinking of buying in the older neighbourhood is at the upper end of values for that neighbourhood, then it may not be the wisest choice. If it is similar or lower in price to the others, then there should be no problem, because pricing should be considered in relation to the local neighbourhood and not compared to homes in other neighbourhoods (for the most part)
Plus, is it a neighbourhood on the decline, or are others going to be fixing things up, too, so that it is a neighbourhood that is improving? It could turn out to be a very good deal as long as you don’t “overpay” because of the recent improvements.
Remember that you also buy a home for it’s value to you as a “home,” and that is something else you should consider. Which neighbourhood would you AND your family feel most comfortable in?