This year, the cumulative orders won by Korea's top 10 builders in urban redevelopment nearly reached a record 50 trillion won. In particular, Hyundai E&C and Samsung C&T solidified a two-strong structure by securing order backlogs close to 20 trillion won.
According to the construction industry on the 30th, the aggregates of urban redevelopment orders for the top 10 builders by construction capability evaluation this year are estimated at about 48.7 trillion won. That is up about 75% from last year's 27.8608 trillion won. This year's redevelopment orders are more than about 16% higher than the record 42.0936 trillion won in 2022.
Looking at the results by top 10 builder, Hyundai E&C, Samsung C&T, POSCO E&C, and HDC Hyundai Development Company each achieved their largest-ever annual urban redevelopment orders.
In particular, Hyundai E&C became the first in the construction industry to join the "10 trillion club," ranking No. 1. Hyundai E&C has held the top spot in redevelopment orders for seven straight years through this year. Hyundai E&C won 10.5105 trillion won in 11 project sites this year. That exceeds by more than 1 trillion won the company's previous record in urban redevelopment orders set in 2022 (9.3 trillion won). It increased about 73% from last year (6.0612 trillion won).
Samsung C&T also won 9.2388 trillion won in orders, taking second place. Compared with last year (3.6398 trillion won) and the previous high set in 2006 (3.66 trillion won), it rose about 154% and about 152%, respectively.
GS Engineering and Construction ranked third with 6.3461 trillion won. GS Engineering and Construction more than doubled its orders this year from last year's 3.1098 trillion won.
POSCO E&C, in fourth place, surpassed last year's record orders (4.7191 trillion won) early by winning more than 5 trillion won in just the first half. However, orders slowed in the second half due to the impact of safety accidents, leaving total orders at 5.9623 trillion won.
HDC Hyundai Development Company, in fifth place, posted 4.8012 trillion won in orders, nearly triple last year's 1.3331 trillion won. Daewoo E&C (3.7727 trillion won), DL E&C (3.6848 trillion won), and Lotte Construction (3.3668 trillion won) also increased their redevelopment orders from last year.
In contrast, SK ecoplant won 982.3 billion won in orders this year, down from last year's 1.3073 trillion won. Hyundai Engineering suspended new orders in the first half due to safety accident issues, resulting in no redevelopment orders.
This year, the top 10 builders prioritized "stability" amid concerns over real estate project financing (PF) risks and a slowdown in the private presales market. It is analyzed that, rather than new residential site developments with high unsold risks, they viewed reconstruction and redevelopment projects in the Seoul metropolitan area with verified location and demand as safer order sources.
A redevelopment industry official said, "In redevelopment projects, the project主体 is the association and the collateral is solid, so financial barriers are low and recovering construction costs is easier than in other projects," and added, "Price increases reflecting higher raw material costs have been partially reflected in construction costs, helping restore a certain level of profitability and supporting large builders' expansion in urban redevelopment orders."
Next year, the urban redevelopment market is expected to grow to the 75 trillion–80 trillion won range. Fierce competition among major builders is expected over Apgujeong, Yeouido, Mok-dong, and Seongsu.