The Mokdong 12 Complex in Yangcheon District and the Seongsu 2 District in Seongdong District, both key redevelopment sites in Seoul, have begun the process of selecting construction firms. The competition among major construction companies for urban redevelopment contracts is expected to intensify in the second half of the year.
According to the construction industry on July 13, the Mokdong 12 Complex reconstruction association and the Seongsu 2 redevelopment association issued a bid announcement on July 7. The two associations will hold a site briefing on July 15 and plan to close bid submissions by August 31.
Located in the Shinjung-dong area of Yangcheon District, the Mokdong 12 Complex is set to transform into a large-scale development with 2,810 units across 43 floors above ground and four floors below. The estimated construction cost is 1.7888 trillion won, with a cost of approximately 9.8 million won per 3.3 square meters. The bid deposit is set at 80 billion won.
The Mokdong 12 Complex is strategically located near Yangcheon-gu Office Station on Subway Line 2. Industry insiders suggest that GS Engineering & Construction is actively pursuing the project, raising the possibility of a sole bid. GS is reportedly focusing on Mokdong 2, 4, 7, 9, and 12 complexes as key targets and plans to establish a 'Xi Lounge' near Mokdong Station to enhance engagement with association members.
Other reconstruction projects in the Mokdong area are also accelerating their construction firm selection processes. The largest reconstruction project in Mokdong, the 14 Complex, is expected to issue a bid announcement in September. This project is anticipated to consist of 5,123 units, with construction costs exceeding 3 trillion won. Major firms such as Hyundai Engineering & Construction, Daewoo Engineering & Construction, Lotte Engineering & Construction, DL E&C, and POSCO E&C are reportedly considering participation.
The Mokdong 13 Complex is also moving forward with its project. The project implementer, Daeshin Asset Trust, held a site briefing last month for construction firm selection, attracting interest from Samsung C&T, Daewoo E&C, DL E&C, IPARK Hyundai Industrial Development, and Jeil Construction.
The Seongsu 2 District has also resumed its construction firm selection process. This redevelopment project aims to build a total of 2,381 units across a maximum of 65 floors in the Seongsu-dong 2 area of Seongdong District. The total project cost is estimated at 2.0137 trillion won, making it the largest among the four districts in the Seongsu strategic redevelopment area. The bid deposit is set at 100 billion won.
Last year, the bidding for Seongsu 2 District was canceled due to internal conflicts within the association and a lack of bids from construction firms. Following the establishment of a new executive board, the project has resumed. Industry analysts believe that DL E&C and IPARK Hyundai Industrial Development are likely to form a competitive landscape in this bidding round.
Despite ongoing concerns about construction cost burdens and selective bidding trends, prime locations like Mokdong and Seongsu are expected to attract significant brand competition among major construction firms.
An industry insider stated, “Seongsu and Mokdong are representative redevelopment sites in Seoul, combining both location and project viability. They will be key indicators of the urban redevelopment bidding market's atmosphere in the second half of the year.”
* This article has been translated by AI.
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