Yeouido 1st Reconstruction is a 'Gongjak'... New Highs Follow in the Speed Race by Complex

Daewoo E&C Wins Construction Contract for Gojak Apartment Reconstruction
'The Summit The Black Edition'... Construction Cost 570.4 Billion KRW

Daewoo E&C has won the contract for the ‘Yeouido Gongjak Apartment Reconstruction Project,’ which will be built up to 49 floors high. This is the first selection of a construction company among the 16 aged complexes undergoing reconstruction in Yeouido. As Hanyang Apartment, which was a strong candidate for ‘Yeouido’s first reconstruction,’ repeatedly canceled its construction company bids, Gongjak Apartment was able to seize this title. With growing expectations for speeding up reconstruction projects such as Gongjak Apartment, Yeouido apartment prices are hitting new highs again despite the economic downturn.

Perspective view of Summit The Black Edition proposed by Daewoo E&C

Daewoo E&C announced on the 19th that it was selected as the final construction company with overwhelming support at the general meeting of all owners of the Gongjak Apartment reconstruction project held on the 17th. Daewoo E&C had previously submitted a sole bid in the first and second rounds of construction company selection, securing the construction rights through a private contract.

Gongjak Apartment is one of the major reconstruction complexes located near Yeouinaru Station on Subway Line 5 in Yeouido-dong, Yeongdeungpo-gu, Seoul. On a site of 16,857㎡, three apartment buildings (570 households) ranging from 7 basement floors to 49 above-ground floors, along with auxiliary welfare facilities, office facilities, and retail facilities, will be newly constructed. KB Real Estate Trust is in charge of the project implementation, and the total construction cost is approximately 570.4 billion KRW.

Daewoo E&C proposed the name ‘Summit The Black Edition’ for the new Gongjak Apartment complex. The name combines ‘Black Label,’ which signifies the highest grade, and ‘Limited Edition,’ meaning a special limited release. A Daewoo E&C official said, "We will make Gongjak Apartment a landmark of the Han River and further leave it as a residential heritage for the ages. Starting with this, we will lead the upper-class residential culture in Korea in areas such as Mokdong and Apgujeong."

With this decision, Gongjak Apartment became the first reconstruction complex in Yeouido to select a construction company. By securing the construction rights for ‘Yeouido’s first reconstruction,’ Daewoo E&C is likely to gain a favorable position for additional reconstruction contracts in Yeouido in the future. Currently, about 8,000 households in 16 aged complexes, including Gongjak Apartment, Hanyang Apartment, Shibeom Apartment, Gwangjang Apartment, Daegyo Apartment, Samik Apartment, Sujeong Apartment, and Eunha Apartment, are pursuing reconstruction in Yeouido.

Originally, the strong candidate for Yeouido’s first reconstruction was Hanyang Apartment, which Seoul City had planned as a financial center-specialized residential-commercial complex. However, the construction company selection scheduled for the end of October was canceled after Seoul City intervened. At that time, KB Real Estate Trust, the project implementer, announced the construction company bid, but including the Lotte Shopping site, which did not have implementation rights for the project area, became an issue. KB Real Estate Trust plans to hold a general meeting of owners on the 26th to discuss agenda items such as purchasing the Lotte Shopping site. Hyundai E&C and POSCO E&C are expected to compete for the construction company selection.

A real estate industry official said, "Recently, as Seoul City converted the Yeouido apartment district into a district unit planning zone, complex development of aged apartments has become possible. Moreover, with the progress of Mayor Oh Se-hoon’s flagship project, Han River Renaissance 2.0, the value of Yeouido is expected to rise further in the future."

In fact, despite the real estate market downturn caused by prolonged high interest rates, record-high transactions are occurring in Yeouido. Last month, the actual transaction price for a 95㎡ unit in Daegyo Apartment reached a record high of 2.075 billion KRW. The transaction prices for the same area in May and June were 1.67 billion KRW and 2 billion KRW, respectively. A 133㎡ unit in the same apartment also set a new record by selling for 2.5 billion KRW on the 23rd of last month. A 109㎡ unit in Hanyang Apartment was also sold at a record high of 2.2 billion KRW on the 21st of last month, which is 210 million KRW higher than the 1.99 billion KRW transaction price in June.