As the bidding war for redevelopment in Apgujeong concludes, construction companies are now turning their attention to Seongsu, Yeouido, and Mokdong. The second half of the year is expected to see a resurgence in competition as large-scale projects worth between 1 trillion and 2 trillion won begin the contractor selection process.
According to the redevelopment industry on June 14, the Seongsu Strategic Redevelopment Zone is anticipated to be the primary battleground in the upcoming bidding wars. The Seongsu 2, 3, and 4 districts are moving forward with contractor selection, establishing themselves as key players in Seoul's redevelopment market following Apgujeong.
The first area where competition is becoming evident is Seongsu 4 District. This project, valued at 1.3628 trillion won, has Daewoo Engineering & Construction and Lotte Engineering & Construction vying for the construction rights. Initially, a general meeting was scheduled for June 27, but disputes over bid proposals and promotional regulations may push this date to July.
Daewoo has claimed that some of Lotte's proposals may violate bidding guidelines and has refused to sign the comparison table, reportedly seeking administrative guidance from the Seongdong District Office and the city of Seoul. The Seongdong District Office has also expressed concerns about potential misunderstandings regarding Lotte's proposal to guarantee a minimum relocation fee of 2 billion won. The final decision will rest with the association's delegate council.
Seongsu 2 and 3 districts also present variables. Seongsu 2 District, with an estimated construction cost of about 1.7846 trillion won, is critical for resuming the contractor selection process, while Seongsu 3 District is seeing interest from major firms like Samsung C&T. However, construction companies are tightening their selective bidding strategies, making the actual bidding landscape fluid.
In Yeouido, the bidding for riverfront redevelopment is gaining momentum. The Shimbun Apartments and Mokhwa Apartments have recently entered the contractor selection phase. The Shimbun Apartments are set to be a 59-story complex with 2,491 units, while Mokhwa Apartments will feature 49 stories and 416 units. The anticipated construction costs are approximately 11.5 million won and 13.7 million won per square meter, respectively.
Yeouido, along with Apgujeong and Seongsu, is considered one of the premier redevelopment sites along the Han River. The combination of expectations for high-rise redevelopment and the symbolic significance of the location is likely to continue attracting interest from major construction firms. In addition to Shimbun and Mokhwa, smaller redevelopment projects like Hwarang are also gaining speed.
The Mokdong New Town redevelopment represents another significant aspect of the second-half market. This area consists of 14 complexes, with the total project size estimated at around 30 trillion won. The bidding process is expected to begin with District 6, followed by District 7 and other complexes being pursued through a trust method.
Hyundai Engineering & Construction, GS Engineering & Construction, Daewoo Engineering & Construction, and Lotte Engineering & Construction are establishing brand lounges and promotional spaces in the Mokdong area to enhance engagement with association members. Given the varying speeds of projects and conditions among the complexes, a dual strategy focusing on specific complexes and long-term planning is anticipated.
Beyond Seongsu, Yeouido, and Mokdong, the Yongsan Seobinggo Shin Dong-A and Jamsil Rose 1, 2, and 3 projects are also attracting the attention of major construction firms. These projects are significant due to their location along the Han River and their scale, making them key variables in future bidding wars.
The core of the second-half bidding will be selective bidding. Major construction firms are evaluating not only the size of the projects but also their profitability, brand impact, association conditions, and financial burdens. While Seongsu, Yeouido, and Mokdong have strong location competitiveness, the substantial construction and relocation costs mean that the actual competitive landscape may vary significantly by project.
An industry insider stated, "While Apgujeong was the focal point of the redevelopment bidding in the first half, Seongsu, Yeouido, and Mokdong are expected to lead the market in the second half. However, as construction and financial burdens increase, major firms are likely to strengthen their selective bidding strategies, focusing on profitability and symbolic significance rather than participating in every project."
* This article has been translated by AI.
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