Market surveys show that in central districts like Hoan Kiem, Ba Dinh, and the old Dong Da area, land prices remain steep. Most houses - whether in alleys or facing the street - rarely fall below 100 million VND (about 4,000 USD) per square meter. Finding a property within that budget is extremely challenging.

However, according to Quân, a real estate agent, it's not impossible. Although rare, there are homes priced between 1 and 1.7 billion VND - usually ultra-compact units hidden deep within narrow alleys and burdened with various limitations.

Quân noted that only one or two of these homes come with legal land use certificates (red books). The rest are often decades-old buildings or too small to qualify for separate ownership documentation.

He is currently marketing a home in central Dong Da for just over 1 billion VND. Unsurprisingly, the property comes with drawbacks: it is only 6m² in size, located 30–40 meters from the main road, and the alley leading to it is dimly lit. The staircase is steep and narrow, making movement difficult.

To maximize space, the owner built five stories: a kitchen with loft storage on the ground floor, a living room on the second, a bedroom and bathroom on the third, another bedroom on the fourth, and a rooftop space on the fifth. It suits single individuals or young couples willing to trade comfort for central location.

In this price range, another listing near the Temple of Literature is on offer for around 1.68 billion VND (approx. 68,000 USD). Remarkably, it includes full legal documentation. Still, the home is just 6m² with a frontage of only a little over 1 meter, spread across four floors plus a rooftop room.

The interior, however, is extremely limited. Windows can’t be opened due to adjacent walls, and there's no indoor bathroom - the occupant must use a shared facility across the alley. One agent joked that living there “feels like an exercise routine” because you have to twist and duck just to move around.

That said, with its proximity to tourist areas, the property could serve well as a short-term rental for visitors wanting a local Old Quarter experience.

In areas like Van Mieu, where history and heritage elevate land value, real estate prices are even higher. Houses on main streets sell for 300–450 million VND/m² (12,000–18,000 USD), depending on location and facade width. Homes in alleys accessible by car fetch 200–270 million VND/m², while those in narrow alleys only reachable by motorbike go for around 140–190 million VND/m².

In Tan Mai (Hoang Mai District), another 1-billion-VND home is on offer. Despite being deep in an alley, the house is relatively airy with windows and over 1 meter of frontage. The ground floor is used as a kitchen, and the upper levels can be arranged into sleeping quarters.

According to real estate agent Thao, this type of home suits single residents, university students, or parents buying for their children while they study in Hanoi. With its location not too far from the center, it also has potential for resale.

In this area, main street properties range from 260–380 million VND/m². Those in alleys with car access cost 160–220 million VND/m², while smaller alleys command 120–160 million VND/m².

Clearly, it is still possible to own a home in central Hanoi on a 1-billion-VND budget. But the buyer must accept trade-offs: tiny floor space, steep staircases, poor lighting, deep alleys, and sometimes the lack of private restrooms.

Though relatively cheap, these homes don’t sell easily. Many buyers, after viewing in person, decide to walk away due to discomfort or legal concerns.

Buyers are advised to proceed with caution. Quality of life can be a major issue given the limited space, awkward layouts, and frequent lack of essential facilities. Moreover, legal complications are common: some homes are too small to qualify for independent land titles, or were built without proper permits. These issues make resale risky and often difficult.

Duy Anh