Hyundai Construction to Refund 100% of Shared Fees for Same Unit Move-in
POSCO E&C Issues Construction Cost Card Near 'Zero Margin'
The bidding war for the reconstruction project of Hanyang Apartment, the "No. 1 reconstruction in Yeouido, Seoul," has officially begun as Hyundai Engineering & Construction and POSCO E&C have thrown their hats into the ring. Hyundai E&C and POSCO E&C are expected to engage in fierce competition, each promoting their premium brands, ‘THE H’ and ‘HAUTERRE,’ respectively.
According to KB Real Estate Trust, which is in charge of project implementation, Hyundai E&C and POSCO E&C have submitted letters of intent to participate in the bidding for the construction company selection of the Hanyang Apartment reconstruction project on the 21st. Since the rapid integration plan was finalized in January, Hanyang Apartment has been progressing the fastest among reconstruction projects in Yeouido. Located in Yeouido-dong 42 area, Yeongdeungpo-gu, the existing 588 households will be demolished and redeveloped into a complex supporting the international financial hub function, consisting of five buildings up to 56 floors, with 956 apartments and 210 officetel units. Due to its symbolic status as Yeouido’s first reconstruction project, major construction companies have shown keen interest.
Hyundai E&C and POSCO E&C have shown strong determination to win the bid even before the bidding process. Hyundai E&C, by participating in the bidding for the construction company selection of the Hanyang Apartment reconstruction project the day before, promised the owners the highest development profits by increasing pre-sale revenue and offering a 100% refund upon moving into the same unit type. They plan to reduce the owners’ burden by enhancing the complex’s luxury strategy to increase general pre-sale profitability. The complex will be named ‘THE H YEOUIDO 1st,’ applying the THE H brand, which has so far only been used in Gangnam and Hannam New Town in Yongsan-gu. They emphasized luxury strategies such as duplex designs, exclusive terraces for each unit, and the creation of sky communities.
POSCO E&C reportedly proposed a construction cost of about 7.8 million KRW per 3.3㎡ (pyeong). This move, close to a ‘zero margin’ offer, is interpreted as an effort to secure the contract for Yeouido’s first reconstruction complex. POSCO E&C is determined to create a luxury complex by applying its high-end brand ‘HAUTERRE,’ based on its architectural achievements and technological capabilities, including the Yeouido high-rise Park One.
Samsung C&T, which was initially expected to join the bidding, did not participate. Some speculate that Samsung C&T is focusing on securing the Noryangjin 1 district project, which may be why it abstained.
The outcome of this bidding war could also influence future reconstruction project bids in Yeouido, such as for the Gongjak, Sibeom, and Sujeong Apartment complexes. The construction company for the Hanyang Apartment reconstruction project is scheduled to be selected by a vote of the union members at the union general meeting on the 29th of next month.
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