Hai, a native of Hoi An, a well-preserved 15th-to-19th-century Southeast Asian trading port that is now part of Da Nang City in central Vietnam, made the decision to relocate his family from the heart of the historic town to the modern conveniences of Da Nang.

The move was largely driven by the daily challenges of living in a carefully conserved heritage zone.

Despite its cultural charm, the cramped environment imposed severe restrictions on even the most basic home improvements.

A view of Hoi An Ancient Town. Photo by VnExpress/Nguyen Dong

Simple, everyday tasks like repairing a broken door or updating a bathroom required navigating rigid conservation rules.

Furthermore, the property lacked direct vehicle access, making routine logistics and transportation a constant struggle for the family.

But Hai has transformed his former residence into a highly lucrative asset: His sprawling, 200-sq.m ancient house on Nguyen Duy Hieu Street commands a monthly rental of VND120 million (US$4,560).

"Among those who actually hold land-use certificates for properties in the ancient town, 95% have sold or rented out their houses," he says.

"The rental income from a few years is enough to buy a plot of several hundred square meters in Cam Chau or Cam Ha [on the outskirts of Da Nang City] and build a spacious new house. The rest can be deposited in savings for retirement."

Data presented at a recent seminar on developing ourism in Hoi An, organized by the Da Nang Department of Culture, Sports and Tourism and the Hoi An World Cultural Heritage Conservation Center, showed that in 2023 the town's core area only had over 3,000 original owners remaining out of almost 10,000 in 1990-2000.

Around 30% of owners were from Hanoi and Ho Chi Minh City, while 40% of the original ones had moved elsewhere.

A year later, in 2024, only 20-30% of heritage buildings remained occupied by their original owners.

Many families with roots in Hoi An struggle to live in deteriorating old houses that have not been restored.

The rental market has continued to skyrocket as major businesses participate in auctions for state-owned properties.

Of nearly 200 properties managed by the state, more than 100 are designated for commercial leasing through auctions.

Tourists visit Hoi An Ancient Town, March 2026. Photo by VnExpres/Nguyen Dong

Nguyen Duc Binh, chief of the Da Nang People's Committee Office and former Hoi An Ward Party secretary, said rents have hit record highs of VND100-200 million a month.

In prime locations, they are even higher.

One corner property near the iconic Bridge Pagoda recently rented for over VND300 million.

Phan, a real estate broker who also owns rental property in the old quarter, views the recent surge in property transactions as a natural result of supply and demand.

He believes the influx of entrepreneurs from major cities is simply a "normal market development."

Locals, by choosing to sell or rent out their historic properties, are able to fund a more comfortable lifestyle elsewhere, he says with a shrug.

Risk of losing heritage values

But the influx of real estate investment is raising concerns about losing the traditional social fabric of the town.

Nguyen Su, a former secretary of the Hoi An City Party Committee, says a traditional ancient house once served three functions: family residence, place of worship, and a small shop serving the neighborhood.

But now, most buildings have been reduced to solely housing commercial businesses, he says.

"Hoi An was once a multicultural town that welcomed Japanese, Chinese, and western communities to live together in harmony, creating a close-knit way of life in which neighbors helped one another through difficult times.

"But its character has changed. When the sole purpose is commercial business, profit inevitably becomes the top priority."

He says residents once encountered familiar faces every few steps in the old quarter, stopping by homes to exchange greetings and enjoy friendly conversations.

But today, even people who have spent their entire lives there can feel like "strangers" in their own neighborhood because the surrounding faces have changed, he laments.

Ngo Thi Gan, 87, is one of the few Hoi An natives still living in the ancient town. The house at 68 Tran Phu Street was left to her by her parents. Photo by VnExpress/Nguyen Dong

Newcomers rent properties to run businesses without knowing their neighbors, and once shops close at night, they lock their doors and return to homes elsewhere, "leaving long stretches of streets cold and deserted," Su says.

On major streets like Bach Dang and Nguyen Thi Minh Khai, rents range from VND60 million to VND120 million a month for houses, equivalent to VND800,000 to VND1 million per square meter.

Business owners are often willing to pay VND3-4 billion upfront for one- to three-year leases to secure fixed rental rates.

Su does the math and expresses fears for the town's social fabric.

These massive advance payments mean huge pressure for the business people to recover their investments, who are forced to aggressively generate revenues, he says.

"When financial pressure becomes overwhelming, people are forced to pursue business at any cost. At that point, we can no longer expect them to behave gently, communicate patiently, or preserve traditional standards of customer service."

This pressure has contributed to the proliferation of noisy bars and aggressive solicitation of tourists, he says, adding that for Hoi An they are square pegs in a round hole.

Pham Phu Ngoc, director of the Hoi An World Cultural Heritage Management Center, says the traditional old houses were not merely lifeless structures made of wood and stone but repositories of a traditional way of life.

If commercial activity remains the priority without practical policies to help original owners retain their homes, the old quarter will lose the cultural vitality of its local community.

How to keep local residents around

With the heritage site at risk of getting commercialized, local officials and experts say administrative decisions alone can no longer provide an effective long-term solution.

Ngoc proposes a scheme to keep residents in the ancient town.

He says authorities should consider setting affordable rents for state-owned properties so that locals can remain and help conserve the buildings.

They can combine residential use with homestay services or dedicate space to cultural and creative activities rather than turning every property into a commercial venue, he adds.

A representative of the Da Nang People's Committee says the city is carefully considering options for managing state-owned properties.

The People's Committee Office has instructed the city Housing Management Center to work with the Hoi An Ward administration to draft a comprehensive plan that balances heritage conservation and the welfare of locals, he reveals.

Many historic houses in Hoi An’s pedestrian zone have been sold or rented out to outsiders who use them for businesses. Photo by VnExpress/Nguyen Dong

Looking at the issue more fundamentally, Su says the local government cannot solve the problem of private property transactions without special mechanisms established by the National Assembly and government.

First of all, the government should establish a public fund to buy back old houses when large families are forced to sell their property to divvy up the inheritance among heirs.

After acquiring such properties, the government should not put them up for auction to outsiders, but should rent them back to the former owners or their descendants at preferential rates, allowing them to continue living there and maintain their ancestral altars, he says.

Besides, people should be allowed to use a small portion of their homes to sell local food and other items with tax waivers or breaks, he says.

He also wants people who remain to care for ancient houses to be paid monthly allowances just like custodial committees responsible for cleaning and maintaining ancestral altars at communal temples.

In the case of government properties, the eligibility for leasing them should be based on whether businesses comply with the ancient town's regulations and promote distinctive local products, he thinks.

The city should prioritize local residents and offer reasonable rents rather than award leases solely to the highest bidders.

"Money that cannot be earned today can be earned tomorrow. But once the cultural value and soul of a heritage site are lost, they cannot be recovered.

"The fundamental requirement is to use tourism revenues to enable Hoi An residents to make a living in their own homes," says the Da Nang official.