Prime Han River View Locations and Numerous General Sales
Construction Companies Give Positive Business Evaluations
Samsung C&T Design Team Conducts On-site Inspection
Hyundai Engineering & Construction and POSCO E&C Promote Brand Exhibition Halls
Active Efforts to Gain Union Members' Approval
This second half of the year, major construction companies have simultaneously entered the bidding competition for redevelopment projects in northern Seoul. Construction companies, which previously selected only profitable projects for bidding, are now vying to win the contract for Hannam 4 District in Yongsan-gu. Although the schedule for selecting the construction company has not yet been announced, they have already begun marketing battles by creating individual online channels targeting association members, inviting them to showrooms, and participating in individual events.
The area around Hannam 4 District in Yongsan-gu, Seoul. Narrow alleys and old houses stand out. (Photo by Kim Hyemin)
According to the redevelopment industry on the 25th, Samsung C&T, Hyundai Engineering & Construction, and POSCO E&C are putting great effort into winning the Hannam 4 District redevelopment project. After Hannam 4 District passed the architectural review last month, they each displayed congratulatory banners, showing their interest. Since then, they have been contacting association members to promote their brands. Delivering promotional brochures to real estate agencies is standard, and they have also invited members to their brand exhibition halls.
◆ Samsung C&T’s design team conducted an early site visit = In particular, Samsung C&T invited association members to visit Raemian One Bailey, located in Banpo-dong, Seocho-gu. They also created dedicated KakaoTalk and YouTube channels for Hannam 4 District early on to focus on winning the contract. The design team will soon be deployed directly to the Hannam 4 District site. It is known that not only the headquarters’ design team but also the Dutch design firm UN Studio will join. Association members interpret this as preparatory work to present innovative design proposals before the construction company selection begins after the architectural review. According to the architectural plan that passed Seoul City’s review last month, Hannam 4 District is planned to have 51 buildings ranging from 7 basement floors to 22 above-ground floors, with 2,331 households.
Hyundai Engineering & Construction has started a strategy to make an impression on association members by inviting them to their high-end brand D’HE exhibition hall. They also featured Hannam 4 District content in their urban redevelopment magazine, ‘Magazine H.’ Hyundai E&C previously won the construction rights for District 3, adjacent to District 4.
POSCO E&C also invited association members to their brand exhibition hall and is conducting a survey among members. This is a preliminary step to refer to during bidding. A representative from the association said, "Judging from the survey content, it feels like they understand well the parts that members are curious about." Hyundai E&C and POSCO E&C plan to apply their high-end brands ‘D’HE’ and ‘Otier,’ respectively.
◆ Fierce bidding competition expected after a long time = The industry expects a fierce bidding competition for the first time in a while. If the current stage is just behind-the-scenes efforts to win public opinion, the competition will become even more intense once the bidding announcement is made and the official election period for selecting the construction company begins. Hannam New Town has historically been a place with intense competition for construction company selection. In the case of Hannam Districts 2 and 3, the competition became so heated that Yongsan-gu Office, Seoul City, and the Ministry of Land, Infrastructure and Transport intervened to mediate.
A representative of a nearby real estate agency said, "Because it is a location with a view of the Han River and has a large number of general sale units, it is evaluated as a highly profitable project even within Hannam New Town, so the competition for selecting the construction company is already underway. DL E&C has a firm hold on District 5 next to District 4, so the competition in District 4 seems to be intensifying."
There also seems to be a perception that this is practically the last chance to plant their brand flag in Hannam New Town. It may take the form of a revenge battle to restore pride. Samsung C&T lost to POSCO E&C in the Busan Chokjin 2-1 District redevelopment in January, and POSCO E&C was defeated by Hyundai E&C in the Yeouido Hanyang Apartment reconstruction project in March.
The Hannam 4 District association plans to announce the bidding next month and hold a general meeting to select the construction company in November. An association official said, "We are currently writing the bidding guidelines and conducting market research to determine the appropriate construction cost." The construction cost is expected to be around 1.7 trillion KRW.
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