Construction competition heats up in Seoul ahead of year-end
As the year draws to a close, competition among major construction firms in Seoul's redevelopment market is intensifying. Hyundai Engineering & Construction was selected on October 31 as the contractor for the Yongsan Han River redevelopment project, valued at 599 billion won, bringing its total cumulative contract amount for urban renewal projects this year to over 13 trillion won. Daewoo Engineering & Construction secured contracts worth a total of 1.2568 trillion won for three redevelopment sites in Seoul: the Shin-Imun Station area, Cheonho A1-1 district, and Cheongpa 1 district. Posco E&C also obtained the construction rights for the Yeokchon Station redevelopment project, valued at 587.4 billion won. IPARK Hyundai Industrial Development was selected as the preferred bidder for the Banghwa 2 district and Shinwol 7-dong 1 district, with a total project value of 1.2313 trillion won. The most anticipated project by year-end is the Seongsu 2 district, with an estimated construction cost of 2.0137 trillion won. DL E&C has been chosen as the preferred bidder, and the final contractor will be determined at an upcoming assembly of project members. Lotte Engineering & Construction plans to proceed with the contractor selection process for the public redevelopment of the Myeonmok 9 district by the end of the year.
Unsold homes persist in Uijeongbu, raising concerns for builders
In Uijeongbu, adjacent to Seoul, unsold homes remain a challenge even after completion. An analysis by Aju Economy of unsold properties in Gyeonggi Province from July to September revealed that the number of unsold units in six completed projects decreased only slightly from 528 at the end of July to 526 by the end of September, a mere 0.4% drop. The Hillstate Hoeryong Station Parkview has 190 unsold units, accounting for 28.2% of its total offerings, while Nikeville has 101 unsold units and Uijeongbu Station's Daecharo has 90 unsold units. Overall, the number of unsold homes in Uijeongbu increased to 640 by the end of September, following the reclassification of 114 units at Harrington Place Uijeongbu Station as completed. The construction industry is concerned that delays in recovering sales proceeds could lead to liquidity issues and hinder future projects. Experts are calling for measures such as tax reductions for unsold properties in the metropolitan area, warning that lowering sale prices or offering incentives could negatively impact project profitability.
Old commercial buildings near Seoksu Station to be transformed into mixed-use complex
In the Geumcheon District near Seoksu Station, aging commercial buildings will be redeveloped into a mixed-use complex with a maximum height of 43 stories and 944 residential units. On October 30, the Seoul City government held a joint committee meeting to approve the revised plan for the Central Steel Comprehensive Market redevelopment project at 966-2 Shiheung-dong. Originally completed in 1987, the Central Steel Comprehensive Market has faced safety concerns due to aging facilities and illegal expansions over the past 39 years. A fire occurred in 2023, and the vacancy rate reached 38.4%. The new project will include six mixed-use buildings with four basement levels and up to 43 stories above ground, along with large retail spaces, public sports facilities, and social welfare services. The city plans to improve pedestrian environments and transportation systems around Seoksu Station, enhancing accessibility to surrounding areas. The upcoming opening of the Shin-Ansan Line is expected to further improve transportation access and expand residential and commercial functions in the southwestern part of Seoul.
* This article has been translated by AI.
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