In old quarters’ small alleys, super small houses are crammed in a narrow space, where natural light almost cannot reach. Most houses share walls or are only separated by a path less than half a meter. Many households utilize lofts, temporary balconies as cooking areas, drying clothes, and even placing shared water tanks on the roof.

Despite limited living conditions, households still cling because of convenient central location, livelihoods tied to old quarter, where can open shops, rent rooms or small trade. This special space factor makes old quarter land always in the rarest real estate group in the capital.

In old quarter small alleys, super small houses crammed in narrow space, where natural light almost cannot enter. Most houses share walls or are only separated by a path less than half a meter. Many households utilize lofts, temporary balconies as cooking areas, drying clothes, even placing shared water tanks on the roof.

Despite the modest living conditions, residents still stay there due to the central location, convenient for livelihoods tied to the old quarter, where they can run small shops, rent out rooms, or carry out petty trade. This unique urban fabric makes real estate in the old quarter among the rarest assets in the capital city.

Tucked deep inside an alley on Hang Bac Street, a two-story house with a 1.6m frontage and 4m depth is listed for VND5 billion. According to the listing, the first floor is a shared living space and kitchen, while the second floor serves as a loft-style bedroom. The owner says they are ready for a quick handover with full legal documents.

A survey across the old quarter shows many houses hidden in narrow lanes have very small floor areas yet sky-high prices.

On Hang Dao Street, a one-story house of 8.2 sqm in an alley is listed for VND4.2 billion, suitable for a studio or rental. Nearby, a 7.8 sqm two-story house in Hang Bo Alley is offered at VND5.2 billion, while another in Hang Gai Street’s alley, 7.2 sqm, is listed for VND6.5 billion.

Although located near the center, many of these houses have remained unsold for a long time. The main reason is the extremely narrow alleys, making parking difficult. In terms of usability, the properties do not justify their asking prices.

Real estate expert Nguyen Dung Minh said one of the key reasons for Hanoi property prices to be listed at the sky high price of VND1 billion per sqm is the absolute scarcity of core urban land. Streets with such high prices are mostly in the old quarter or around Hoan Kiem Lake, where there is almost no room for expansion. This scarcity pushes the value of every square meter to record levels.

An inch of land is an inch of gold

Currently, house prices in alleys within the central area of Hoan Kiem range from VND200 million to VND800 million per sqm for alleys accessible by cars, while those accessible only by motorbikes range from VND130 million to VND500 million per sqm, depending on location and alley width.

The Trang Tien, Dong Xuan, and Hang Dao areas have the highest prices. In the former Trang Tien Ward, houses in car-accessible alleys reach VND600–800 million per sqm, while smaller alleys for motorbikes range from VND400–500 million per sqm. Dong Xuan and Hang Dao areas range from VND500-700 million per sqm for car alleys and VND350-480 million per sqm for motorbike alleys.

Meanwhile, wards like Ly Thai To, Hang Bai, Tran Hung Dao, and Hang Bong maintain prices between VND380–600 million per sqm.

House prices in Hoan Kiem’s old quarters’ small alleys are significantly higher than in neighboring districts like Ba Dinh or Hai Ba Trung. In Ba Dinh, streets with similar locations (such as Kim Ma Thuong, Ngoc Ha, Giang Van Minh) record VND300–500 million per sqm for car-accessible alleys and VND200–320 million per sqm for smaller ones.

Nguyen Quang Thanh, a real estate expert, said properties in the old quarter have almost no new supply. Despite small sizes and deteriorating conditions, prices remain high due to their location in a heritage zone. However, short-term profit potential is limited because of legal and infrastructure constraints.

According to the broker, although old quarter property prices have risen continuously over the past two years, actual transactions remain limited. Most owners expect very high selling prices because of the central location, but there are few real buyers. Houses in extremely narrow alleys with just a few square meters often need a 10–20 percent discount from the asking price to attract inquiries.

Duy Anh