'Hannam 4 District with Construction Cost of 1.6 Trillion Won, Begins Contractor Selection'

The 'Hannam 4 Redevelopment Promotion Zone Housing Redevelopment Project (Hannam 4 District),' considered the biggest redevelopment project in the northern Seoul area in the second half of this year, has entered the construction company selection phase.

A view of Hannam 4 District, Yongsan-gu, Seoul. (Photo by Kim Hye-min)

According to the maintenance industry on the 20th, the Hannam 4 District association announced a bid notice for selecting a construction company on the same day. A site briefing session will be held on the 30th, and bids will be accepted from the 1st of next month until November 18. The association set the bid qualification to require a cash deposit of 50 billion KRW as a bid bond. Consortium participation among companies was restricted. The construction cost is 9.4 million KRW per 3.3㎡, with the estimated construction cost reaching 1.5723 trillion KRW.

Hannam 4 District is a redevelopment project of the 360 area in Bogwang-dong, Yongsan-gu, Seoul, constructing apartments and ancillary welfare facilities consisting of 51 buildings and 2,331 households, ranging from 7 basement floors to 22 above-ground floors. It is prime land in the northern Seoul area located between Seobinggo Station and Hannam Station on the Gyeongui-Jungang Line, and with construction costs approaching 1.6 trillion KRW, it is regarded as the biggest project in Seoul in the second half of this year.

Samsung C&T and Hyundai Engineering & Construction are expected to compete in this bidding war. It will be the first time in over ten years that these two companies face off for the construction rights of a redevelopment project. Previously, it was anticipated to be a three-way competition including POSCO E&C, but POSCO E&C reportedly withdrew due to controversies surrounding the construction company selection.

Samsung C&T is expected to set its bidding strategy by emphasizing the premiumization of its 'Raemian' brand. After halting new housing project bids from 2015 to 2019, Samsung C&T resumed bidding in 2020, cautiously focusing on the Gangnam area and projects with high profitability. Hyundai Engineering & Construction, having been selected as the construction company for Hannam 3 District adjacent to Hannam 4 District, plans to link the two districts to create a DH brand town. Hannam 3 District is currently undergoing redevelopment under the name 'DH Hannam.'