The redevelopment project for Apgujeong 2 District in Gangnam, Seoul, is set to select a construction company in June, causing prices to skyrocket. A large unit along the Han River was sold for 9.6 billion won, and there are predictions that the sale price could soon reach 10 billion won.
According to the construction industry on the 26th, the association for the redevelopment project in Apgujeong Apartment District Special Plan 2 will issue a bid announcement for selecting a construction company in mid-June. The selection of the construction company is expected to be completed by September. The construction industry is focused on whether there will be a rematch between Samsung C&T and Hyundai E&C.
A representative of the Apgujeong 2 District association said, "We recently notified members that we will begin selecting a construction company in June," adding, "Details such as construction costs have not yet been determined."
With the Apgujeong 2 District proceeding the fastest among the Apgujeong redevelopment areas, demand is also increasing. The highest prices are being reset for each unit type. According to the brokerage industry, a transaction for a 182-square-meter (60 pyeong) unit at the New Hyundai Apartment, which belongs to Apgujeong 2 District, was signed last week for 9.6 billion won. Considering that the highest price transacted in May last year was 7.5 billion won, this represents an increase of 2.1 billion won. The apartments in this area, which offer a view of the Han River, were known to be about 1 billion won higher than comparable units. After the news of the 9.6 billion won transaction broke, the asking price surged to 10 billion won.
Additionally, a 170-square-meter (57 pyeong) unit at the New Hyundai was reported to have set a new high price at 7.05 billion won (3rd floor) in November last year. Recently, it has been reported that the buyers of this unit are comedian Park Soo-hong and his wife, which has generated additional media interest. Park Soo-hong co-owns the apartment with his wife Kim Da-ye, splitting the ownership equally. Apgujeong 2 District consists of the New Hyundai Apartments, phases 9, 11, and 12. Completed in 1982, the area encompasses a total of 27 buildings and 1,924 units. After redevelopment, the area is slated to be reborn with a maximum of 65 floors and 2,571 units.
Park Hapsu, an adjunct professor at Konkuk University Graduate School of Real Estate, noted, "The recent transaction of 9.6 billion won for a 60 pyeong unit should be regarded as a transaction of about 200 million won per 3.3 square meters when considering fees for occupation until moving in and redevelopment recovery fees. He added, "This transaction must take into consideration the additional potential for price increases after moving in, the value of permanent Han River views, and the fact that it has entered the Apgujeong community."
The construction industry anticipates that a rematch between Samsung C&T and Hyundai E&C will materialize in the bid for Apgujeong 2 District scheduled for June. The project cost for Apgujeong 2 District is estimated to be 2.4 trillion won. A construction industry representative commented, "Apgujeong 2 District is currently the fastest project in the area, attracting interest from multiple construction companies," adding, "While Samsung C&T has recently been actively involved in maintenance projects, Hyundai E&C, as the 'longtime resident' of Apgujeong, suggests that neither party can back down."