​Uncompleted Hanoi villas converted into affordable housing for students, workers

The 19-year-old from Quang Ninh Province, a first-year student at the Hanoi International College, says: “It is spacious, airy, secure, and peaceful, making it ideal for the four of us. I did not think we could get such a lovely room like this in Hanoi.”

He used to live in Nam Tu Liem District in a dilapidated 10-square-meter room paying VND2 million, which did not include the cost of electricity and water.

He still relies on his parents for his expenses, and so when friends recommended a room in an unused villa in Hoai Duc’s Van Canh urban neighborhood that cost 15-20% less, he jumped at it especially since the landlord allowed four people to share it.Many unoccupied villas like Chien’s rented house have been transformed into cheap boarding houses, most of them in suburban areas.

According to the Vietnam National Real Estate Association, the housing market boomed in 2006-10 and saw new urban areas with villas and houses mushrooming all over the place.

But the enthusiasm ended once the market cooled, and many houses valued VND5-40 billion have remained uncompleted since then.

Meanwhile, there is a shortage of affordable accommodation for rent for students and workers.

Realizing this, housing companies are renovating unused villas and converting them into cheap boarding houses to rent them out to students and low-income workers.

Ni Ngon Chien (white shirt), Voong Van Mach (black) and their two roommates in the 35-square-meter room they rent in the Van Canh urban area in Hanoi’s outlying Hoai Duc District on September 23, 2022. Photo by VnExpress/Quynh Nguyen

Le Van Hoa, 38, says his company, of which he is general director, has converted 115 villas and semi-detached houses in places like Van Co and Tan Tay Do Do into over 1,000 rented rooms since 2019.

The fully equipped rooms are 20-40 square meters in size, can accommodate four persons, and cost VND2-3.5 million.

The villa where Chien and the others rent is in the HUD Van Canh urban area and has four floors with eight rooms, and a surveillance camera in the front for security. The rooms are freshly painted and have tiled flooring and balconies for drying clothes and cooking. Beds, cabinets and water heaters come with the rooms, and air conditioners and refrigerators are available on demand.

In addition to the room and utility charges, occupants also pay a monthly fee of VND40,000 for janitors to come to clean the corridors, toilets and garden.

When something in the rooms fails, repairs are done for free.

Hoa says he has rented out lodging to over 6,000 people in the last three years, 70% of them students and the rest, low-income workers.

“The number of people renting rooms declined marginally during the pandemic period, but returned to previous levels early this year. The occupancy rate is 90% and the minimum lease period is six months.”

A semi-detached house at Hanoi’s Van Canh Urban Area that has been converted into a cheap boarding house for students and manual laborers. Photo by VnExpress/Quynh Nguyen

He says he often runs out of rooms, especially during the peak period when students begin a new school year.

Every day now he gets more than 100 requests to inspect the rooms, just like in late July and early August, and sometimes he has to turn them down.

Hoa’s company adds 70-80 new rooms every month by renovating villas and semi-detached houses.

He says: “We set ourselves a goal of providing 3,000 high-end low-priced rooms by 2025. This not only addresses the shortage of affordable accommodation but also saves villa owners from possible penalties.”

He was referring to a proposal the city and the Ministry of Finance considered a few years ago to tax or otherwise penalize people leaving villas half-finished and abandoned. At that time there were more than 1,200 unused villas and semi-detached houses.

However, nothing has materialized since.

Nguyen Van Dinh, chairman of the Vietnam Association of Realtors, said converting abandoned houses into cheap boarding places for rent is a good solution that should be encouraged particularly in light of the increasing affordable housing shortage.

“However, villa owners should be required to … apply for licenses and ensure their properties meet sanitation, fire safety and other criteria.”

Dinh Thi Trang, 20, has been renting a room in an unfinished villa for the last three months. She says: “Some people may be worried about this location because it is secluded and few people pass by, but I like it because it gives me more privacy. I cannot believe unused villas can be so clean and lovely.”

Voong Van Mach, 18, one of Chien’s roommates, says: “I love it here. I like the fresh air and lack of automobiles. We can exercise on the street after school. Maybe I will continue to stay here for a long time.”