This article first appeared in City & Country, The Edge Malaysia Weekly on May 29, 2023 - June 4, 2023

Greeted by cold weather upon arriving at the Noi Bai International Airport in Hanoi in early January, we were whisked off to the 191-acre township of ParkCity Hanoi located in the east of the capital city of Vietnam.

Developed by ParkCity Group since 2010, the award-winning township has an abundance of mature trees and Phong Linh (Caribbean trumpet trees), and leafy thoroughfares. The freehold ParkCity Hanoi has an estimated gross development value (GDV) of US$2.5 billion (RM11.3 billion) and will have 5,739 residential units once completed.

During City & Country’s visit to the site, the group’s trademark DNA in placemaking, landscaping and building communities could be clearly seen, enhancing its presence in the local market.

Making us feel at home were ParkCity Hanoi general manager Yap Chin Hua and team, as well as the friendly residents. Among the places we visited were the clubhouse — The ParkCity Club Hanoi, with a modern interior, gym, café, outdoor and indoor swimming pools, and expansive tennis and basketball courts built to suit Vietnam’s four-season weather — and the International School at ParkCity Hanoi (ISPH), which has been in operation since 2019.

In a separate, exclusive interview at its show gallery in Desa ParkCity, Kuala Lumpur recently, ParkCity Group CEO Datuk Joseph Lau appears upbeat and recalls his frequent visits to ParkCity Hanoi.

“We are pioneers for being the first-of-its-kind, master-planned township there. To date, we have delivered 977 residential units in ParkCity Hanoi. Our clubhouse is well equipped and caters for the four seasons in Hanoi, while ISPH can accommodate up to 1,500 students of more than 10 nationalities from Vietnam, Korea, Malaysia, England, Australia, South Africa and so on. Most of our previously launched developments have been fully taken up,” he says.

Owing to the encouraging response to the township’s residential components and facilities, the group plans to launch its commercial project next. “For FY2023, our focus will be on the neighbourhood mall in ParkCity Hanoi named The Linc. We have partnered with Central Food Retail’s supermarket chain TOPS Market, which will be our anchor tenant,” reveals Lau.

The Linc will be completed in two phases. The first phase is slated to open in 2Q2024, with further details to be firmed up. The mall will have a total gross floor area (GFA) of 18,961 sq m and a net lettable area (NLA) of 11,425 sq m across three levels upon completion.

“Our aim is to cater for young families and young adults in the district of Ha Dong and its vicinity. The Linc will be well connected to the park and other residential neighbourhoods. We will create new offerings, one-stop conveniences and it will be fully managed by the group,” Lau says, adding that The Linc’s concept will mirror that of The Waterfront at Desa ParkCity, Kuala Lumpur.

According to Lau, ParkCity Hanoi has been well received. “The feedback from residents has been reassuring. They appreciate what we do … There is demand there for townships that are community-centric and specially designed with good facilities, which is why we brought the group’s strength in placemaking to the Hanoi market.

“Compared to when we first launched our developments in ParkCity Hanoi in 2010, we have observed a capital appreciation of 30% to 50%, based on our market studies and reports. We are confident that the community there will continue to grow and thrive,” he adds.

The group is capitalising on trends in the local market and opportunities in Hanoi, where homebuyers “are looking for a branded developer and lifestyle concept”. Lau is confident that ParkCity Hanoi will appeal to them.

“Some of the big players are already in Hanoi. The real estate market there is experiencing rapid urbanisation with its young population, and housing is an important government agenda.”

In terms of the demographic in ParkCity Hanoi, it appears quite well balanced, notes Lau. “Generally, our developments at the township have attracted mostly owner-occupiers, with a small number of investors.

“The catchments are within a 15km radius of ParkCity Hanoi (Ha Dong, Thanh Xuan, Nam Tu Liem, Dong Da and Cau Giay). We have a good mix of Vietnamese buyers, while our overseas buyers — expats, foreigners — are mostly those working in Hanoi, especially Koreans, Hong Kongers and Malaysians. There is a lot of foreign direct investment (FDI) coming into Hanoi … which are mainly Japanese, Korean and Singaporean investments for infrastructure and manufacturing.”

Lau acknowledges the importance of diversified products, as seen in the township. “Our developments in Hanoi cater for different age groups that have different needs and wants. For example, Park Kiara [condominium] targets the younger generation and first-time homebuyers.

“Developments like [the French-inspired] The Mansions are targeted at upgraders and upper-­income owners who enjoy luxury living within a community. Most of them are white-collar workers, directors, owners of small and medium enterprises, and [those who work in] state-owned companies.”

ParkCity Hanoi has completed and handed over a number of developments such as park homes Nadyne Gardens (177 units) in 2014 and Evelyne Gardens (165 units) in 2017 as well as luxury park homes The Mansions (146 units) in 2020. “Our most recent handovers are the condominium Park Kiara (432 units) and garden villas Le Jardin (57 units) in 2022, which have gained positive reviews and accolades.” Lau adds that the average launch prices vary, from The Mansions’ US$765 to US$895 per sq m and Park Kiara’s US$1,852 per sq m, to Le Jardin’s US$400 per sq m (for its bare finish units).

ParkCity Hanoi was named one of the Top 10 Most Liveable Townships in Hanoi by the Vietnam National Real Estate Association in 2020, 2021 and 2022. “Some of the recently completed projects have received awards — such as Park Kiara for Best Luxurious Green & Wellness Condo Of The Year from Robb Report magazine in its Best of the Best,” says Lau.

Other worthy mentions are The Mansions’ Best Housing Development (Hanoi) award from the Vietnam Property Guru Awards 2020; Evelyne Gardens’ Best Housing Architectural Design (Vietnam) award from the Asia Property Guru Awards 2017 and Best Housing Development (Vietnam) accolade from the Vietnam Property Guru Awards 2017; and The ParkCity Club Hanoi’s Best Retail Landscape & Architectural Design award from the Vietnam Property Guru Awards 2017.

ParkCity Hanoi is strategically located in Ha Dong, which has been dubbed one of the fastest-growing socioeconomic districts in Hanoi. “ParkCity Hanoi is about 14km, or a 30-minute drive, from the city centre,” says Lau. Nearby amenities include Aeon Mall Ha Dong, Vincom Mega Mall Smart City, The Garden Shopping Centre, Cho do cu Van Phuc market, Vinhomes Royal City and Hanoi University.

“In terms of connectivity, ParkCity Hanoi is also very near the new administration centre, and there is a metro line operating since 2021,” he says, pointing out that the township is just 800m from the La Khe station.

The real estate market in Vietnam has not always been smooth sailing, Lau recalls, especially during the global financial crisis and the Covid-19 pandemic.

“Despite the obstacles, our products continue to appeal to the Hanoi market, with consistently good take-ups. We are optimistic that soon the overall local real estate market will perform better with an anticipated gross domestic product growth, and that our products will continue to attract prospective buyers and investors.”

There appears to be more activity in Hanoi, according to CBRE Vietnam’s “Vietnam Market Outlook 2023” report, published in February. Although new launches of condominiums in Hanoi are at a nine-year low, the number of condo units sold surpassed new supply in 2022.  For landed homes, a total of 16,585 units were sold, and there appeared to be a robust new supply of landed homes in Hanoi with a sold rate of 60% in the same year.

The report says,  “The pressure on interest rates continues, and more actions are required to ease the market. Developers are to find new funding sources; in terms of mergers and acquisitions, it is a good time to restructure portfolios and find opportunities.”

Lau says, “In Vietnam, the control of credit and bonds has made it difficult for both businesses and people to access financing loans for real estate.

“The rising lending rates have weakened demand … Financial funding is one of the main struggles and difficulties faced by our consumers. To overcome this, we have introduced flexible payment schemes and collaborated with banks in offering a better lending rate.”

Staying true to the group’s DNA and navigating the local Vietnamese culture has been a learning process, Lau continues. “With all the market research done, we are conscious of the local culture, their needs and wants. A level of localisation has been taken into consideration, from our planning to implementation, and dealing with their authorities and approvals … we maintain good relations with the respective authorities. We always keep our ear to the ground, and we continue to listen to our consumers.”

Lau adds, “With our dedicated team in Hanoi, we strive to study and understand the local community in ParkCity Hanoi to enhance the group’s future developments in Vietnam. For example, we learnt that in Hanoi, the community prefers their residential units to be handed over with bare finishes … They also prefer more motorcycle rather than car parking bays to be allocated with their units. In fact, we are the first developer to have parking bays attached and assigned to each unit in Hanoi.

“We learnt that Vietnamese consumers also appreciate good landscaping, hence our clubhouse is designed for use throughout the four seasons, both indoors and outdoors for all the common areas for social and sport activities.

“Our focus on landscaping and streetscapes along the internal roads is not just for aesthetic purposes but also designed as shade,” he says, adding that the measures are aligned with the group’s overall sustainability ethos.

Lau stresses the importance of staying positive. “There are plenty of opportunities, underneath the challenges. We just need to stay positive and explore new ways of digitalisation and discover untapped markets.”

ParkCity Hanoi closely mirrors the philosophy, master plan and development blueprint of the established 473-acre Desa ParkCity township in Kuala Lumpur, which was built with a focus on sustainability and holistic living, according to Lau. “We hope to continue to create a strong presence in Vietnam, with our known blueprint in KL and East Malaysia.”

Apart from ParkCity Hanoi, the group is focusing on its ongoing developments, namely Kenny Heights in Kuching, which is a heritage colonial suburb that is set to attract homeowners and investors seeking a curated lifestyle concept.

Occupying a 45-acre tract of land, Kenny Heights comprises four phases, which include collections of bungalows, semi-detached homes and condominiums, with amenities and leisure components such as a neighbourhood mall within landscaped parks. “We have our upcoming projects in Kenny Heights called The Mansions, which will sit on a 10.3-acre tract and comprise 2-storey semi-detached and bungalow units for multigenerational families,” says Lau.

“In Vietnam, we are actively seeking more land bank in Hanoi, Ho Chi Minh City and other big cities. The success of ParkCity Hanoi is further proof of the group’s capabilities in the country,” he says, adding that the company’s land bank in Vietnam currently stands at 191 acres in Hanoi.

“Sustainability will be one of the key drivers defining our business. In order to create sustainable communities, they need to be diverse, well connected, and conveniences need to be thoughtfully designed. We will place more sustainable 

elements and features across all our developments in the near future.

“Our focus is to grow the ParkCity brand both locally and internationally. This year, we reviewed our brand pillars and refined our five brand pillars to three — ‘diverse community, seamless connectivity and thoughtful conveniences’,” says Lau. 

“For the long term, our vision is to inculcate these pillars, and to continue to set benchmarks with ParkCity Hanoi and expand our presence in Vietnam, and our other ongoing developments in KL and East Malaysia.”

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