Competitive bidding among large construction companies is intensifying over prime reconstruction and redevelopment sites along the Han River in Seoul.
Construction companies are seen making efforts to secure lucrative private redevelopment sites to overcome the sluggish construction market and the absence of real estate policies.
According to the construction industry on the 24th, three major construction companies, Hyundai E&C, GS Engineering and Construction, and HDC Hyundai Development Company, submitted letters of intent to bid for the redevelopment association of the Seong-su Strategic Maintenance Area District 1 in Seongdong-gu, Seoul.
The Seong-su District 1 association plans to issue a bid announcement at the end of August and select a construction company by the end of the year.
The redevelopment of the Seong-su Strategic Maintenance Area is a project to build a complex housing development with a total of 55 buildings, up to 65 stories, and 9,428 units (including 2,040 rental units) in the area of Seong-su-dong 1-ga in Seongdong-gu, Seoul. The Seong-su District 1 is the fastest in progress, and the construction cost reaches 2 trillion won. Evaluations from the maintenance industry indicate it has excellent business potential due to its proximity to Apgujeong and the Han River.
Major construction companies are gearing up for the bidding competition by emphasizing their strengths. GS Engineering and Construction is collaborating with the global architectural design firm "David Chipperfield Architects" for this purpose. Hyundai E&C is proposing the high-end brand "D.H." and is collaborating with overseas design firms. HDC Hyundai Development Company is seeking strategies for regional infrastructure development beyond just apartment construction.
Large-scale redevelopment projects centered around the Han River belt in Seoul, including Seong-su, Yongsan, Gangnam, and Yeouido, are pouring in. In the project worth 1 trillion won, the redevelopment of the front area of Yongsan Maintenance Facility, where HDC Hyundai Development Company and POSCO E&C faced off on the 22nd, HDC Hyundai Development Company was selected as the final contractor. With its successful bid for the redevelopment of the front area of Yongsan Maintenance Facility, HDC Hyundai Development Company's cumulative order amount for urban maintenance projects has increased to 2.22 trillion won this year.
The Yongsan Maintenance Facility project aims to establish 12 high-rise buildings ranging from 6 underground floors to 38 above ground and 780 apartments, 651 officetels, and commercial facilities in the Han River area of Yongsan-gu, Han-gangno 3-ga. The project site is adjacent to Yongsan Station, near the International Business District (YIBD), U.S. military base return sites, and the headquarters of large corporations.
The redevelopment association for the Daekyo Apartments in Yeouido is expected to announce bids for contractor selection as early as this month. As a large-scale project estimated at 800 billion won, it is reported that Samsung C&T and Lotte Construction are showing interest.
In Gangnam, Samsung C&T and Daewoo E&C are expected to compete for the construction rights of the redevelopment of Gaepo Woosung 7, estimated at 677.8 billion won. This competition between Samsung C&T and Daewoo E&C for maintenance projects in the Gangnam area is the first in about five years since the Banpo District 3 (Raemian Trinity One) in 2020.
Daewoo E&C is preparing a luxury strategy through its high-end brand "Summit." Samsung C&T is collaborating with the global design firm Arcadis to develop landmark-level construction strategies in the area.
This year, the order amount for maintenance projects by the top 10 construction companies has surpassed 20 trillion won, exceeding 70% of last year's total order amount (27.87 trillion won). The competition for maintenance project contracts among large construction companies is expected to intensify in the second half of the year.