Work to select builders for the Seongsu strategic maintenance zone, considered the biggest redevelopment along the Han River in Seoul, is picking up speed. Among the four districts, district 1 was the first to select GS Engineering & Construction as the builder, and district 4 will hold a general meeting to select a builder in early July. With districts 2 and 3 also pushing to select builders in the second half, the outline of the Seongsu-area maintenance projects is coming into full view.
According to the maintenance industry on the 27th, the Seongsu district 4 redevelopment association will hold a general meeting to select a contractor on Aug. 5. The Seongsu district 4 redevelopment will build apartments up to 64 stories tall with 1,439 households, along with ancillary welfare facilities, in the Seongsu-dong 2-ga area of Seongdong District, Seoul. The planned construction cost is 1.3628 trillion won. The construction cost per 3.3 square meters is about 11.4 million won, similar to Apgujeong district 2, a key maintenance site in Gangnam.
Daewoo Engineering & Construction and Lotte Engineering & Construction are facing off over the construction rights for Seongsu district 4. There was friction during the bidding process. The first bid was voided due to incomplete design documents and controversy over violations of publicity guidelines. Even after the rebid in April, back-and-forth over terms for relocation loan support raised the possibility of schedule delays. The association decided to proceed with the procedures, taking into account concerns about project delays.
Daewoo Engineering & Construction proposed "The Seongsu 520" instead of the high-end brand "Summit." It emphasized the value of the location by reflecting the about 520-meter view line running along the Han River in the complex name. Recently, it also moved to highlight its design competitiveness by reviewing collaboration with Richard Meier, a Pritzker Prize winner. Lotte Engineering & Construction put forward its high-end residential brand "LEEL." Its strategy is to apply its experience building Lotte World Tower, the tallest building in Korea, to Seongsu district 4, which will top out at 64 stories.
Seongsu district 3 has also begun procedures to select a builder. The association recently held an on-site briefing for builder selection, which was attended by Samsung C&T, JEIL Construction Co., and Kumho E&C, among others. The association plans to close bidding on Aug. 10 and select the final builder in the second half. The industry is focusing on Samsung C&T's moves.
Seongsu district 2 is also expected to issue a bidding notice for builder selection this month. DL E&C and IPARK Hyundai Development Company are being mentioned as potential candidates. However, internal conflict within the association is seen as a variable. Seongsu district 2 went through allegations of misconduct by the association head and a controversy over retracting a resignation last year, and since a new executive body was launched in March, conflict with commercial-unit association members has surfaced. An official at a construction company said, "Some builders are interested in Seongsu district 2, but some are concerned about potential project delays, so we will have to see whether they submit final bids."
As builder selection becomes more concrete, home prices within the Seongsu strategic maintenance zone are also showing strength. According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, a 84-square-meter exclusive unit at Gangbyeon Gunyung in district 1 changed hands for 2.9 billion won on Mar. 29, setting a record high. Compared with a transaction at 1.8 billion won in May last year, it rose 1.1 billion won in 10 months. In district 4, an 84-square-meter exclusive unit at Gangbyeon Kumho Town last traded at 2.3815 billion won in July last year, and although there have been no recent transactions, asking prices are around 4 billion won. An 84-square-meter exclusive unit at Gangbyeon Imkwang in the same district also changed hands for 3.4 billion won in April.
The maintenance industry expects competition to reshape high-end residential districts along the Han River to intensify once builder selection in the Seongsu strategic maintenance zone is completed. An official at a major construction company said, "Seongsu has location advantages that include access to Gangnam, views of the Han River, and the Seoul Forest living area," adding, "If the project gains speed after builder selection, interest in the Seoul maintenance project market will grow further."