After nearly four decades in Canada, my uncle has returned to Vietnam to settle down in his homeland, following the passing of his wife. With his daughter married and living in France and his son residing in the U.S., he thought finding a cozy home in Ho Chi Minh City (HCMC) with a budget of VND18 billion (US$700,000) would be a breeze. However, he was in for a surprise as he soon found tube houses tucked away in narrow alleys commanding prices upwards of VND10 billion — and some even flirting with VND20 billion.
Despite the current market being described as “frozen,” these diminutive central properties, often measuring barely a few dozen square meters with outdated designs, continue to carry lofty price tags. This perplexing phenomenon is likely mirrored in Hanoi as well.
Rather than navigating the steep staircases of these narrow homes, my uncle mused about investing in land in a nearby province and building a house with a small yard. Initially, he favored city living for its conveniences and access to medical care, but after weighing the options, he cautiously decided to “leave the decision for next time.”
Once a practical solution to rapid urban growth during chaotic city planning, tube houses have now morphed into overpriced assets. Prices no longer reflect comfort or practicality, often inflated by rampant speculation, land hoarding, and the prevailing notion that “downtown real estate will always appreciate.”
While homes in city centers undeniably boast location advantages and resale potential, the reality of treating cramped 4-5 meter wide houses as premium properties exposes a market distortion that prioritizes financial gain over genuine living needs. Instead of enjoying the luxury of space and greenery, many find themselves squeezed into small dwellings simply because they boast billion-dollar valuations on paper.
The path forward for housing development must embrace a holistic urban strategy that enhances suburban infrastructure, relieves the pressure on city centers, promotes affordable housing, and edges the market away from treating homes as mere investment vehicles.
If you were in my uncle’s shoes, would you opt for a cramped tube house in a bustling alley, or carve out your dream home on a spacious plot of land in a nearby province?
What led my uncle to return to Vietnam?
He returned after living in Canada for nearly 40 years, following the death of his wife, with both his children living abroad.
What challenges did he face while house hunting in HCMC?
Despite a solid budget, he found that even small, narrow tube houses were priced way above expectations, with many costing over VND10 billion.
How can the housing market in Vietnam improve?
A comprehensive urban strategy is needed that emphasizes suburban development, affordable housing, and a balanced approach to property ownership without excessive speculation.
