Southern Hanoi set to be new growth zone

Although the area is very close to Hanoi’s central business district, it had not been on real estate developers’ radar screen for a long time as it was home to a number of manufacturing facilities and considered more polluted than other parts of the capital city.

However, Nathan Cumberlidge, associate director of CBRE, said the recent completion of significant infrastructure projects such as the Thanh Tri bridge and the future widening of Ring Road 2 with the construction of an urban elevated road along this beltway, was paving thay way for real estate developers to come and build.

“This will make the south of Hanoi region a midpoint and thoroughfare connecting Cau Giay and Ha Dong district in the west to Bac Ninh province in the east and [the projects are] therefore of great significance,” Cumberlidge told VIR.

He added roads had been improved to allow better transport through the region, which would bring with it a new wave of development.

Already several projects are going up along Minh Khai road in the capital’s Hai Ba Trung district.

The biggest project currently under construction is Times City, a 36-hectare townships featuring more than 8,000 apartments, which area bankrolled by an affiliate of Ho Chi Minh Stock Exchange-listed Vincom Joint Stock Company.

Developed by Thang Long Garment Company and ECON Construction Joint Stock Company, Thaloga-Econ Residential and Trading centre will offer more than 44,000 square metres of apartment space and 22,000sqm of office space when finished at the end of 2013.

Meanwhile, HUD3 has just kicked off work on the 21-storey HUD3-Hanel building which combines offices and apartments for lease.

Most of new real estate projects along Minh Khai street are being built on the former manufacturing sites.

Kang Hyun Goo, deputy general director of Space 21 Fonexim - the developer of the Han Viet Office Tower launched in August, said the southern region of Hanoi was developing into a strong office location.

“Major infrastructure projects and its close proximity to Hoan Kiem district make it an ideal strategic location for occupiers,” Goo said.

Located at 203 Minh Khai street, the tower with its 19,448sqm of high class office space is the area’s first office building to go into operation.

Han Viet Tower will soon be joined by the office, hotel and retail space on offer at Vinaconex’s Mo Market which is being developed on Minh Khai street. Retail space at the building is now on sale to investors.

The commercial development of the area is supported by rapid retail development with the mega retail complex at Vincom’s Times City offering 230,000sqm by 2014.

Hundreds of apartments at the Hoa Binh Green City on Minh Khai road will also be launched onto the market at the end of this year. Invested by Hoa Binh Company and Agrexim, the project is expected to be finished in 2014. It comprises apartments, a trading centre and kindergarten.

The Daewon-Thu Duc Housing Development, developed by a Ho Chi Minh City-based firm is also in the construction planning phase. The planned project comprises five apartment towers and one office tower in Minh Khai street, and total investment capital is VND1,500 billion ($70 million).

Further the south, another major scheme is the 320-hectare Yen So Park developed by Malaysia Gamuda Land which is currently under construction.

The project involves the redevelopment and transformation of an existing park into an international-class theme park surrounded with integrated commercial and residential developments, Grade A office space, four- and five-star hotels, convention centre and shops.

According to Cumberlidge, the fast developing south of Hanoi will also help meet the office and apartment needs of Bac Ninh province which is as Hanoi’s premier industrial zone and has tenants including Samsung, Pepsi and Foxconn, as well as the Noi Bai airport.

“As an import link zone, the south area of Hanoi is likely to see strong demand from office occupiers keen to take advantage of this strong industrial link,” said Cumberlidge.