Why Are People in Hanoi Racing to “Hunt” Houses in Alleys?

An alley house hunting frenzy has taken over the people of Hanoi. But what is driving this trend, and why are people forgoing traditional apartments in favor of alley houses? Let’s dive into the reasons behind this phenomenon and uncover the allure of these hidden gems.

The Hunt for Affordable Housing

Mr. Nguyen Hung, a resident of Dong Da district, recently purchased a 40-square-meter, 3.5-story alley house on Tran Dien street for 3.5 billion VND. Surprisingly, Mr. Hung’s family initially had no interest in alley houses due to the lack of parking space. However, after struggling for six months to find an affordable apartment, they decided to settle for an alley house. Despite the inconveniences compared to apartments, Mr. Hung highlighted the advantage of its proximity to both spouses’ workplaces.

Caption: Alley houses priced between 3 and 5 billion VND in central districts are highly sought after.

Chung Cu Apartments – A Pricey Alternative

In his pursuit of finding a suitable home, Mr. Hung visited numerous apartments, both old and newly developed. However, the soaring prices of apartments deterred him. For instance, a project in Tay Mo Ward, Nam Tu Liem District had an initial price of approximately 66 million VND per square meter (excluding VAT). When factoring in taxes, the price per square meter ramped up to 72 million VND. This means a 74-square-meter, 2-bedroom apartment would cost around 5.3 billion VND. Even older apartments in areas like Thanh Xuan and Dong Da, which have been in use for 5-7 years, are priced at over 5 billion VND. Comparatively, despite having a smaller area of 40 square meters, alley houses with three floors offer over 100 square meters of usable space at a significantly lower price than apartments.

The Appeal of Alley Houses

Real estate broker, Ms. Ngoc Tam, specializing in alley houses in Hanoi, has been witnessing a surge in interest and inquiries over the past two months. She has been showing alley houses to potential buyers, with some weeks seeing nearly ten visits per house. Having four years of experience in the field, Ms. Tam has noticed that the most sought-after houses are those with a small area of 30-45 square meters, priced below 5 billion VND. These houses are typically located in alleys in districts such as Ha Dong, Hoang Mai, Hai Ba Trung, and Dong Da. New houses, with attractive prices and favorable locations that are not affected by zoning regulations or Feng Shui, are often sold almost immediately after being listed.

“Trends for alley houses in central districts, especially those priced between 3 and 5 billion VND, have seen a surge in interest, although transaction volumes are still not as high as during the peak times of the market,” shared Ms. Tam.

Steady Growth in the Hanoi Real Estate Market

A recent report by Batdongsan, a real estate channel, indicates that while many segments of the real estate industry have experienced a slowdown, the residential land market in Hanoi continues to grow. Prices and interest in this segment during the early months of this year have increased by 2-9% compared to the same period last year. Among them, individual houses in Tay Ho District have seen the most significant price increase, soaring by 9%. Other districts like Dong Da, Ha Dong, Hai Ba Trung, and Hoang Mai have also experienced price hikes ranging from 4-8%.

A survey conducted by Batdongsan further revealed that the best-performing segment in Hanoi is individual houses priced between 3 and 5 billion VND.

The Shift Towards Alley Houses

Explaining this shift in the market, Mr. Pham Duc Toan, founder of EZ Property, mentioned how alley houses used to be considered as a choice for those who couldn’t afford brand new apartments. However, skyrocketing apartment prices in both primary and secondary markets have prompted some buyers to turn their attention to alley houses. With the same budget, many individuals are now willing to accept the inconveniences of living in alley houses due to the larger usable floor areas they offer.

The allure of alley houses in Hanoi is undeniable. Despite the challenges they may present, these hidden gems provide an affordable alternative to costly apartments. As the real estate market continues to evolve, alley houses are becoming an increasingly attractive option for those seeking a cozy home in the heart of the city.

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