In recent years, as I have watched real estate prices surge, I have noticed a paradox in Vietnam. Older houses sometimes become more expensive.

I realize the price increase is not really about the house itself, but the land beneath it. Houses can deteriorate, but land does not expand. At the same time, the population keeps growing, and more people move into major cities. Land in convenient locations has become scarce. Supply cannot keep up with demand, so land prices rise, pulling the overall value of real estate up, even if the house is old.

Another factor is the mindset of buying land to preserve wealth. When inflation rises or the economy shifts, many people around me choose land or housing as a safe place for their money. Some do not buy to live in. They simply hold it and wait for prices to go up because "there is nothing to lose." This pushes prices even higher.

A worried man sits by a window. Illustration photo by Pexels

The market also lacks strong tools to regulate it. Owning multiple properties does not come with significantly extra costs. As a result, people with capital can accumulate real estate and leave it empty while waiting for the right time to sell. With no pressure to use or release supply, available housing tightens, and prices continue to rise.

What worries me most are the consequences. For young people like me, buying a home is becoming increasingly out of reach. Even with stable jobs and years of saving, income growth cannot keep pace with land price increases. The dream of having a home feels more fragile than ever.

On top of that, money flow in society is starting to drift in the wrong direction. Instead of going into production or business that creates real value, much of the capital is locked into land. This can slow long-term economic growth. It also widens the wealth gap. Those who already own land become richer as prices rise, while those without assets find it harder to access housing opportunities.

From my perspective, solving this paradox requires stronger policy changes. First, higher taxes on second homes and beyond are necessary. This would limit hoarding and push owners to either use or circulate their properties.

Second, planning information must be more transparent. Clear and public data can reduce rumor-driven land price spikes. When people have reliable information, the market becomes less volatile.

I also believe social housing needs a stronger role, not only as support but as a tool to stabilize overall price levels. In addition, credit policies should favor people buying homes to live in, rather than short-term speculation.

In the end, the fact that older houses still rise in price reflects a market distorted by hoarding behavior and weak controls. In my view, only when housing is seen for what it truly is, a place to live, not a trading asset, can this paradox begin to ease.