The first bid to select a Sigongsa for the redevelopment of Mok-dong New Town Complex 13 in Yangcheon District, Seoul, failed after a sole bid by Samsung C&T's construction division.
According to the maintenance industry on the 7th, the project implementer Daishin Asset Trust closed the first bid to select a Sigongsa at 2 p.m. that day. Under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents, at least two companies must participate for a redevelopment Sigongsa bid to be valid, but only Samsung C&T submitted a bid, resulting in a failure.
Industry watchers said the result reflects construction companies turning to "selective bidding," prioritizing profitability and the likelihood of winning orders over scale as construction costs and financing expenses rise.
The Mok-dong Complex 13 redevelopment calls for building an apartment complex of 3,852 households, with 4 underground floors to 49 aboveground floors, on a 178,919-square-meter site at 327 Sinjeong-dong, Yangcheon District. Daishin Asset Trust estimates construction costs at 2.3762 trillion won, or about 9.8 million won per 3.3 square meters. It is one of the larger Mok-dong redevelopment projects.
Samsung C&T marked this complex early as its first target for orders in the Mok-dong New Town area and jumped into the bidding race. It also prepared an alternative design in collaboration with overseas designer SMDP. SMDP worked with Samsung C&T on major redevelopment projects such as Raemian One Bailey and Shinbanpo 4th.
After sharing the failed bid outcome with the public manager, Yangcheon District Office, Daishin Asset Trust plans to issue a re-bid notice soon. If competition does not materialize in the second bid either, a Sigongsa can be selected through a private contract.