Competition over "high-end brands" is expected to intensify in Mok-dong, cited as a core area for redevelopment in Seoul. Construction companies plan to push high-end brands to secure construction rights for the Mok-dong reconstruction project, which alone carries project costs of 30 trillion won. If all 14 complexes in the Mok-dong New Town demand high-end brand construction, Mok-dong is expected to be reborn as a large-scale high-end brand residential cluster with 47,000 households.
According to the redevelopment industry on the 21st, Hyundai Engineering & Construction is setting up a high-end brand THE H Mok-dong lounge near Complex 10 in Mok-dong, Yangcheon District, Seoul. The move targets the large-scale Mok-dong reconstruction sites, and the company plans to use the lounge to present THE H's brand philosophy and construction concept. A Hyundai Engineering & Construction official said, "We are creating a lounge that union members of the Mok-dong reconstruction complexes can visit," adding, "We are preparing to open it."
In Mok-dong, 14 apartment complexes are pursuing reconstruction projects. The total scale is 30 trillion won, and once completed, about 47,000 households are expected to be built. Among "Ap-Yeomokseong (Apgujeong, Yeouido, Mok-dong, Seongsu-dong)," cited as core redevelopment areas in Seoul, it is the largest in scale.
Other builders are also preparing to target the Mok-dong reconstruction through high-end brands. Except for Samsung C&T and GS Engineering & Construction, which do not have separate high-end brands, each company is reportedly strongly considering applying its own high-end brand. Beyond Hyundai Engineering & Construction's THE H, builders' high-end brands include ▲ Daewoo Engineering & Construction "Summit" ▲ DL E&C "ACRO" ▲ POSCO E&C "HAUTERRE" ▲ Lotte Construction "LEEL" ▲ SK ecoplant "DE'FINE."
A construction company official said, "It is almost certain that Mok-dong will adopt high-end brands," adding, "Even for Samsung C&T and GS Engineering & Construction, which do not have high-end brands, the unions are expected to demand more upscale apartment names." The official added, "For example, in Samsung C&T's case, the union may ask to attach 'One' to the apartment name like Raemian One Bailey or One Pentas, or in GS Engineering & Construction's case, to include 'Gran' as in Seocho Gran Xi and Bangbae Gran Xi."
Another construction company official said, "It is not physically impossible for all of Mok-dong to become a high-end brand town," adding, "When unions select builders, proposals are made in the direction union members want most, so if each Mok-dong complex wants a high-end brand, proposals will be tailored accordingly."
Although the Mok-dong reconstruction project is large, fierce competition stemming from high-end brand applications also appears likely, leading to expectations that builders will divide target complexes for bidding. The general assessment is that Samsung C&T will focus its bidding capacity on Complexes 1, 3 and 5; DL E&C on Complex 6; GS Engineering & Construction on Complex 12; and Hyundai Engineering & Construction on Complexes 7, 10 and 14.
Another construction company official said, "Even if there are overlapping bids, it is highly likely that unions will demand high-end brands across the board, so we will not enter bids for every complex," adding, "As in Hannam, if builders win one site, they may participate selectively in other bids." The official explained, "Even if we win multiple sites, we can apply high-end brands to all of them," adding, "If that happens, all of Mok-dong could become a high-end brand town for builders."
All 14 complexes in Mok-dong are pursuing reconstruction. The fastest-moving site is Complex 6. On the 12th of last month, it posted a bid notice for a builder and held a briefing session on the 23rd of the same month. Ten builders, including Samsung C&T, Hyundai Engineering & Construction, DL E&C, Daewoo Engineering & Construction, and POSCO E&C, attended the briefing for Complex 6 in Mok-dong, where total construction costs are expected to be 1.2123 trillion won, signaling interest in securing construction rights.
Mok-dong Complexes 8 and 13 also aim to select a builder this year. Other complexes likewise completed designation as redevelopment zones last year and are accelerating reconstruction. Mok-dong Complex 12 received approval to establish a reconstruction union on the 27th of last month and is entering the project in earnest.