Hannam Heights, D-1 to First Reconstruction Bid of the Year

Hyundai Construction vs GS Construction... Final Stage of Promotional Competition

Perspective renderings of Hyundai Engineering & Construction's 'Hannam D.H Graviche' (above) and GS Engineering & Construction's 'Hannam Xi The River' (below).

[Asia Economy Reporter Kim Yuri] Hyundai Engineering & Construction and GS Engineering & Construction are fiercely competing for the construction rights of Hannam Heights in Oksu-dong, Seongdong-gu, known as this year's first major reconstruction project in Seoul. On the 18th, ahead of the general meeting for selecting the construction company, both companies are engaged in a tense showdown with no concessions until the last moment.

The Hannam Heights reconstruction is considered one of the largest projects in northern Seoul, alongside the Hannam 3 District redevelopment in Hannam-dong, Yongsan-gu. The project involves demolishing 535 apartments built in 1982 at 220-1 Oksu-dong, Seongdong-gu, and constructing 10 new buildings with 790 households. The site offers views of the Han River and faces Apgujeong-dong, one of Gangnam's representative affluent neighborhoods across the river, making the outcome of this project influential for future major redevelopment and reconstruction bids. Although administratively located in Oksu-dong, it is also close to 'Hannam The Hill' in Hannam-dong, Yongsan-gu, considered one of the most luxurious apartments in Korea.

According to industry sources on the 17th, Hyundai Engineering & Construction and GS Engineering & Construction are intensifying their final promotional efforts by emphasizing design plans and brand appeal ahead of the general meeting.

Hyundai Engineering & Construction has unveiled the design plan for Hannam Heights under the name 'Hannam D.H Graviche.' They are putting significant effort into this project, applying their premium apartment brand 'D.H' for the first time in northern Seoul. They highlighted the development of top-floor terrace layouts to increase the number of units with Han River views. To maximize the river view, they plan to collaborate with the renowned architectural design firm SMDP (Seoul Metropolitan Design Partnership) to apply new design techniques. SMDP was responsible for designing 'Acro Seoul Forest' in Seongsu-dong, Seongdong-gu, and 'Tower Palace Phase 3' in Dogok-dong, Gangnam-gu. The community facilities will include an infinity pool overlooking the Han River, a walking health pool, aqua bike pool, and bath pool. Hyundai Engineering & Construction proposed a post-payment method for construction costs from sales revenue, rather than pre-payment, to facilitate smooth project progress and offered 200 billion KRW as project promotion funds.

GS Engineering & Construction presented the design plan 'Hannam Xi The River.' Leveraging the riverside location, they plan to increase the number of units with Han River views to 305 and include 347 terrace-type units. The top floor will feature a 'rooftop terrace,' the first floor will have terraces with front yards, and the middle floors will include 'pocket terraces' and open balconies. Community facilities will upgrade existing fitness centers, swimming pools, and saunas included in the current association plan, adding a sky lounge, pet caf?, audio room, and guest house. GS Engineering & Construction emphasized their plan as a 'realistic alternative design,' making minor changes within 10% of the existing association design. They proposed construction costs 13.2 billion KRW lower than the association's estimate. To reduce the association's financial burden, they set the construction cost calculation base date, which reflects inflation, three months later than their competitor. They also offered 55 billion KRW as project promotion funds.

However, with the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government closely monitoring the overheating of bidding wars in redevelopment projects, both the association and the companies are maintaining a cautious atmosphere. At the end of last year, the Ministry and Seoul City requested investigations into Hyundai Engineering & Construction, GS Engineering & Construction, and Daelim Industrial for their overheated competition in bidding for Hannam 3 District. An industry insider said, "The association is wary of promoting additional designs beyond alternative plans, and overall, the atmosphere is not as overheated as it was during the Hannam 3 District competition."

Meanwhile, the industry expects the domestic and international construction market to remain unfavorable this year, with severe polarization among projects. Therefore, competition around projects such as Hannam Heights, Hannam 3 District, and Banpo-dong Jugong 1 Complex 3 District in Seocho-gu is expected to be fiercer than ever.