DL E&C said on the 4th that it proposed construction costs of 11.39 million won per 3.3 square meters for the reconstruction project in Apgujeong District 5 in Gangnam-gu, Seoul. DL E&C said this is more than 1 million won lower than the construction costs proposed by the association.
DL E&C also proposed improving the revenue structure by using retail space and general sales. In Apgujeong District 5, general sales amount to only 29 households, so how to design this supply and what price competitiveness to secure directly affects the business viability. DL E&C presented a strategy to maximize general-sales revenue for these 29 households through high-end specialized designs that emphasize scarcity and symbolism, such as penthouses.
The retail space is also planned at about 5,060 pyeong to expand the revenue base, and the company plans to maximize the sale price by inducing a competitive bidding structure through a partnership with a global commercial-facility sales specialist. It also proposed that the builder bear the expenses related to retail construction. This was derived by analyzing the business structure of Apgujeong District 5, which has no retail-space association members, and was proposed to minimize the association's burden.
If unsold units occur in the apartments or retail space, DL E&C plans to purchase them directly on terms favorable to the association. Through this, the company plans to structurally block the risk of unsold units that could arise for association members and strengthen business stability.
A DL E&C official said, "The maintenance-project market recently is an environment where even a single external variable can significantly shake project costs, and Apgujeong District 5 in particular is a site where both the burden on association members and business viability must be considered at the same time, so we structured the business conditions to reduce uncertainty and lower the burden on association members."