On the 30th of this month, on-site briefing, July 16 bidding
Industry highly evaluates DL E&C's chances of winning the contract
Hannam 5 District, considered the most prime location in Hannam New Town, a major redevelopment project in northern Seoul, is set to select a construction company. As this project aims to establish a landmark in the core area of northern Seoul, major construction firms are showing interest.
On the 27th, the Hannam 5 Redevelopment Promotion District Housing Redevelopment Association announced that it will hold a site briefing on the 30th and conduct a bidding process for selecting a construction company on July 16. The construction cost was set at 9.16 million KRW per 3.3㎡. The total construction cost amounts to 1.7583 trillion KRW.
After redevelopment, Hannam 5 District will consist of 56 buildings ranging from 6 basement floors to 23 above-ground floors, with 2,592 apartment units, sales facilities, and one building for office facilities (officetel).
Among the top-tier construction companies, DL E&C and Lotte Construction are noted as interested parties in securing the construction rights for Hannam 5 District. In a meeting held by the association in March, Hyundai Engineering & Construction, Daewoo Engineering & Construction, DL E&C, Lotte Construction, and HDC Hyundai Development Company participated.
The industry expects a high possibility of DL E&C winning the bid. Although DL E&C failed to secure the contract for Hannam 3 District, it has been actively engaging in sales activities for Hannam 5 District for a long time. Hannam New Town is a symbolic riverside location along the Han River, and its strong business potential has attracted considerable attention from construction companies.
An industry insider explained, "There is talk that the bid might fail if only DL E&C participates," adding, "The association hopes multiple construction companies will compete and sign a contract under favorable conditions, but construction companies are aware that DL E&C has been working on this for a long time, so they are hesitant to step forward prematurely."
Lotte Construction is also one of the construction companies likely to participate in the bidding for Hannam 5 District. Compared to projects like Yeouido Bridge or Shinbanpo 12th Complex, they have not put as much effort into securing this contract, so the outcome remains to be seen. A Lotte Construction representative said, "Hannam New Town is a project we are interested in, but the decision to participate in the bid is undecided."
Hannam New Town faces Banpo, offers views of the Han River, and is adjacent to Yongsan Park, making it an area with many development benefits. With luxury apartments such as Hannam The Hill and Nine One Hannam, it has established itself as an affluent neighborhood.
Jeong Bohyun, Senior Researcher of Real Estate at NH Investment & Securities, stated, "The market price for large luxury apartments has exceeded 10 million KRW per pyeong, and once the Hannam New Town project is completed, the sale price is expected to be over 10 million KRW per pyeong. Although it is a regulated area where transfer of association member status is not possible after management disposition approval, if there is enough time, purchasing in the 5 District is worth considering."
Many construction companies are also interested in Hannam 4 District, which is expected to select a construction company in the second half of this year. Hyundai Engineering & Construction, Samsung C&T, and POSCO Engineering & Construction have shown interest in securing the contract. Hannam 4 District is regarded as the most viable project within Hannam New Town and is planned to be rebuilt with 2,331 households.
Hannam New Town is currently under development in four districts, with Hyundai Engineering & Construction selected as the construction company for Hannam 3 District and Daewoo Engineering & Construction for Hannam 2 District.
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