Bid Announcement for Construction Company Selection on the 8th
Prime Complexes Located Near The DH Gaepo Xi
Major Construction Companies Like Samsung, GS Eyeing the Project
[Asia Economy Reporter Onyu Lim] Gaepo Hanshin Apartment in Irwon-dong, one of the last pieces of the reconstruction puzzle in the Gaepo Residential Development District, Gangnam-gu, Seoul, is set to select a construction company.
According to the maintenance industry on the 10th, the Gaepo Hanshin Reconstruction Association announced a bidding notice for selecting a construction company on the 8th and will hold a site briefing session on the 16th. Only single bids are allowed, and the bid deposit is 10 billion KRW. The bidding is scheduled to close on November 3.
Irwon Gaepo Hanshin is a mid-rise apartment built in 1984, consisting of 4 buildings with 364 households. Through reconstruction, it is planned to be transformed into 3 buildings with 498 households, ranging from 3 basement floors to 35 floors above ground. The maintenance plan was established in July 2017, the association was formed in November 2018, and the project implementation approval was received last month.
The estimated construction cost proposed by the association is 188.47462 billion KRW, which is not very large in scale. However, since it is a reconstruction in a prime area of Gangnam, major construction companies boasting major brands such as Samsung C&T, GS Engineering & Construction, and Daewoo Engineering & Construction are reportedly actively participating in the project. This complex is a transit-oriented development near Daemosan Entrance Station on the Bundang Line and Daecheong Station on Line 3. The school districts of Irwon Elementary School and Jungdong Middle and High Schools are also excellent.
Most of the aging complexes in the Gaepo district are being transformed into high-priced apartment areas through reconstruction. For example, The H Xi Gaepo, which reconstructed the Jugong 8th complex next to Gaepo Hanshin with 1,996 households, recently attracted nearly 250,000 applicants for 5 non-priority subscription units. This is because the price difference compared to the sale price is expected to reach 1.5 billion KRW, causing housing prices in the area to surge. Raemian Gaepo Luceheim, an 850-household complex reconstructed from Irwon Hyundai Apartments, was occupied in November 2018, and The H Forecent, a 184-household complex reconstructed from Irwon Daewoo, completed construction earlier this year.
However, Gaepo Hanshin, along with Gaepo Woosung 7th and Gaepo 4th Hyundai, has been relatively slow in progress and has been called the ‘last puzzle’ of reconstruction in the Gaepo district. Originally, Seoul City recommended integrated reconstruction of these complexes under the district unit plan, but due to differing interests among the complexes, individual projects were pursued, delaying the schedule.
As expectations for reconstruction grow and available properties for transaction decrease, the price of Gaepo Hanshin is also rising rapidly. A 107.6㎡ (exclusive area) unit that was traded for 2.365 billion KRW in July is currently listed at 2.5 billion KRW.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
