Hung and his wife (in Dinh Cong ward, Hanoi) had a budget of VND6 billion and were seeking housing in Hanoi. But they quickly realized that central or suburban land options were increasingly limited. Houses in their price range typically have just 30-40 sqm, tucked deep in narrow alleys, lacking sunlight.

“We visited many places, but most were twisty alleys where cars can’t reach, even motorbikes struggle to pass each other. There’s little natural light, no common space, no play area for kids. Spending VND6 billion yet being ‘locked’ in such a claustrophobic place is really not worth it,” Hung said.

According to surveys at several real estate exchanges, the number of houses for sale in alleys in central districts priced at VND6-7 billion is low. Common traits include very modest area (under 30 sqm), awkward location (deep alleys, narrow frontage under 2 m), or need for renovation. Previously, such houses cost only about VND3-4 billion.

On one property site, a house in Van Huong alley of only 26 sqm is listed for nearly VND7 billion, roughly VND265 million/sqm. In Ton Duc Thang street, another 24 sqm house in a small alley is priced at VND258 million /sqm. In Van Chuong alley, a 19 sqm, 4‑story house is listed at VND289 million/sqm.

In areas like Hoang Mai, Ha Dong, Thanh Xuan, properties priced around VND6-7 billion D also tend to be under 30 sqm, located deep in alleys.

Nguyen Dinh Thang, a real estate broker in Hoang Mai, said that clients find it difficult to buy a house or land in the VND6-7 billion range. They can’t find a satisfactory property, while owners believe prices will keep rising. 

Even slightly better-located houses are already listed above VND8 billion. Owners tend to hold out for price increases or set listing prices much higher than what buyers can realistically accept.

Faced with these constraints, Hung considered depositing the full VND6 billion he has in a bank at about 6 percent per year. Simple calculations show this can generate 360 million dong a year, or VND30 million a month. 

That amount alone is enough to rent a premium apartment in central Hanoi, where rental rates range from VND20 million to VND40 million a month depending on location and amenities.

Instead of being squeezed into dead‑end alleys, Hung’s family can enjoy a spacious, modern living environment with amenities: swimming pool, gym, car parking, and easy commuting across districts.

According to Hung, renting offers high flexibility. Unbound by a fixed property, the family can relocate easily if job circumstances change, while avoiding risks from fluctuating property prices.

Superior quality of life includes a high-end apartment in the city center providing a green, clean environment, 24/7 security, proximity to international schools and shopping centers. It helps to balance work and family without worrying about maintenance or repairs.

Moreover, his principal remains secure in the bank and can be withdrawn for investments in stocks, open funds, or provincial real estate when the market stabilizes, rather than sinking everything into an illiquid asset.

Hung believes that buying a small alley house for VND6 billion now carries risks: limited value growth and potential illiquidity without clear urban planning.

Renting a high-end apartment with the VND30 million monthly interest not only provides a comfortable lifestyle but also allows the couple time to research, wait for market corrections, or seek other real estate investment opportunities with better returns.

Financial consultant Nguyen Huong Giang said there is no universal answer to buying versus renting. It depends on each family’s long-term goals.

However, Hung and his wife’s story is a typical example of a shift in modern young people’s housing mindset. They no longer assume that settling down means owning a small plot of land at all costs.

Amid Hanoi’s rising real estate prices, choosing to rent a high-end apartment with interest from existing capital is a smart and practical approach. Financially, this decision is well-founded. Instead of “freezing” a large sum in a property with many limitations, they can turn it into a profit-generating tool. The monthly interest not only covers a better living space but also maintains financial flexibility.

The fear of renting due to not owning a tangible asset remains common. However, from a purely economic perspective, when the opportunity cost of owning a low-quality house is too high, renting becomes an optimal solution.

Duy Anh