Despite the downturn in the construction market and soaring construction costs, construction companies are actively pursuing orders for reconstruction and redevelopment projects. According to the maintenance industry, general meetings for selecting construction companies are scheduled at 10 locations nationwide this month, with 6 of them taking place in Seoul.
Hoban Construction formed a consortium with SK Ecoplant on the 3rd and won the redevelopment maintenance project for Doma Byeon-dong 6-1 district in Daejeon Metropolitan City. This is the first achievement in two years since the 2022 Shin Noryangjin Market maintenance project. The project involves constructing apartments and ancillary welfare facilities consisting of 8 buildings, ranging from 3 basement floors to 35 above-ground floors, totaling 1,090 households in the Doma-dong area of Seo-gu, Daejeon.
Having successfully secured its first maintenance project order this year, Hoban Construction plans to establish the ‘Seoul Landmark Construction Project.’ Hoban Construction is active in several project sites including Bangbae-dong, Cheonho-dong, and Sinjeong-dong, and is preparing to compete with other construction companies.
Since 2016, Hoban Construction has been winning various maintenance projects in Seoul. It has secured construction rights in Sinjeong, Gaebong, Yongsan, among others. Notably, last year’s ‘Hoban Summit Edition’ in the 5th district around Yongsan International Building attracted 10,575 applicants for 65 households (excluding special supply), recording an average competition rate of 162.69 to 1. The most popular 84㎡ A-type had 5,771 applicants for 11 households, resulting in a competition rate of 524.64 to 1.
Despite the economic downturn, Hoban Construction maintains a solid financial soundness with an industry-low debt ratio of 26% and a high current ratio of 589%, demonstrating strong competitiveness in securing orders. Despite the overall recession in the domestic construction and real estate markets, Hoban Construction achieved stable management results last year with sales of 1.8709 trillion KRW, net profit of 589.7 billion KRW, and operating profit of 185.2 billion KRW. The total sales of the Hoban Group reached 8.1627 trillion KRW, net profit was 979.3 billion KRW, and total assets amounted to 16.0934 trillion KRW, an increase of 1.46 trillion KRW compared to 2022.
A representative from Hoban Construction stated, “All of our supplies in Seoul, including Hoban Summit Edition and Hoban Summit Mokdong, sold out early, highlighting our competitiveness in apartment branding,” and added, “Hoban Construction is doing its best to secure landmark projects in the Seoul area.”
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