A bar opening tomorrow on Beiluoguxiang is the latest example of a growing trend that has seen shops take advantage of the street's proximity to Nanluoguxiang (NLGX) Pedestrian Street, minus the cost, the kitsch and the chaos.

Zhang Jinkui, owner of the bar, which will be called Yuewang, is optimistic about the development of the street.

"Beiluoguxiang is going to be the next Nanluoguxiang," he said. "But now is the time to invest here before the street gets overwhelmed by too many businesses."

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Yuewang, which is styled to reflect the history and intrigue of China's Spring and Autumn Period, is part of Zhang's vision for incorporating Chinese tradition inside its iconic dwellings - the hutongs.

"The hutong is a part of Beijing culture, and it represents the traditional side of the capital. So, my history-featured bar is going to fit into the style," he said.

"Nanluoguxiang once represented that, but it has been over invested - the business in Beiluoguxiang has just started."

Xiao Chang, who owns two small clothing boutiques right at the entrance of Beiluoguxiang, is a part of this northern expansion. He opened his shops in March.

"I saw that NLGX had become over-commercialized, but here it's more low-profile," he told METRO. "We are free to come up with our own style."

The relatively low rent doesn't hurt either, he said.

"The rent here is one-third of the rent in NLGX," he said. The rent there is crazy. Every month, shops close down because they can't afford it."

Other bar owners agree.

Yang Zixi of Ruguo, Si opened his bar on Beiluoguxiang two years ago.

"At first, I planned to open this place in NLGX, but we thought that it was over-developed, and this was three, four years ago," Yang said. "Over there, it's noisy and busy. Here, it's quiet, it has style. So we decided to open here."

"It's close enough to NLGX so people can find it, or stumble upon it, really."

An employee surnamed Zhou from the press office of the Andingmen sub-district government, which has jurisdiction over Beiluoguxiang, told METRO Beiluoguxiang's development has been more organic than that of its counterpart to the south.

"Up to now, there's been no investment from the government [for Beiluoguxiang] that exceeds 10 million yuan. But it's always easy for Nanluoguxiang to get anywhere from 20 to 30 million yuan whenever it wants," Zhou said.

"This area is more residential, rather than a business community," he said. "But I think that will change. However, the development will be slower [than NLGX's]. People are slowly moving there."

The area is in the right place at the right time, said Beijing resident Jordan Kanter, who frequents the bars on Beiluoguxiang.

"Part of what I like is that it's still got a mix of the Chinese and Western," Kanter said. "But with bar areas like Houhai and Nanluoguxiang there is a tendency to completely overdo them and ruin them. It seems like anytime anyone gets a good thing going, within a couple of years there are so many bars, it gets overwhelmed and loses it charm."

According to Lao Qi, owner of Owl Bar, which is the oldest bar on the street, the transition has been underway for some time.

"People are coming to ask about the availability of rooms and shops on this street all the time," Lao said.

He said stores on the street have closed down recently because their owners want to rent them to bar owners and charge more money.