675 Votes Out of 1,026 (65.8%) Secured
100% Han River View for All Members... Unprecedented Relocation Benefits
Will the Competition for Construction Rights in Apgujeong and Seongsu Change?
Samsung C&T was selected as the construction company for Hannam 4 District in Yongsan-gu, Seoul, where the top two construction companies fiercely competed for the contract. With this win, Samsung C&T not only maintained its pride as the industry leader but also entered the prime location of 'Hannam New Town.' It is evaluated that the differentiation strategy emphasizing Hyundai Engineering & Construction's recent win of the adjacent Hannam 3 District worked in Samsung C&T's favor.
'65.7% Vote Share' Overwhelming Margin, The Secret
A bird's-eye view of 'Raemian Glowhills Hannam' proposed by Samsung C&T for Hannam District 4. (Provided by Samsung C&T)
The Hannam 4 District redevelopment association held an extraordinary general meeting on the afternoon of the 18th to select a construction company through voting, choosing Samsung C&T. Samsung C&T received 675 votes, accounting for 65.7% of the total 1,026 votes. Hyundai Engineering & Construction received 335 votes, with 16 abstentions and invalid votes.
Samsung C&T and Hyundai Engineering & Construction had been engaged in intense competition for the Hannam 4 District contract. The competition was so heated that the association prohibited individual promotional activities before the official bidding to prevent overheating. Even after the official bidding, the competition intensified to the point where the Yongsan District Office, the jurisdictional authority, summoned the construction companies to issue a warning.
It is assessed that Samsung C&T gained the upper hand because the association members wanted differentiation from Hannam 3 District. Although Hyundai Engineering & Construction proposed lower construction costs and shorter construction periods than Samsung C&T for Hannam 4 District, many association members were concerned because Hyundai Engineering & Construction had already secured the adjacent Hannam 3 District. In this context, the pledge made by Hyundai Engineering & Construction during the Hannam 3 District bid, including the opening of Hyundai Department Store, was canceled, and the project was delayed by about a year, which influenced the decision of Hannam 4 District association members who witnessed this.
A 60s female association member said, "Residents of Hannam 3 District were neighbors who interacted through a narrow two-lane road," and added, "We believed that if Samsung C&T won, both Hannam 3 and 4 Districts would competitively accelerate the project." Another association member said, "There were concerns that Hyundai Engineering & Construction might suffer losses in aspects such as Han River views to accommodate Hannam 3 District."
Complex Name 'Raemian Glowhills Hannam'... Proposal for 100% Han River View for Association Members
Samsung C&T proposed the complex name 'Raemian Glowhills Hannam.' Four buildings facing the Han River will feature a spiral-shaped circular main building design, creating a landmark tower that appears to rotate floor by floor. They promised that all 1,153 association members would have a Han River view. The community facilities are designed to cover 12,000 pyeong (approximately 39,668 square meters), six times the size of Seoul City Hall Plaza. They also proposed creating a sky community at the highest location in Hannam New Town. The construction cost was proposed at about 1.5695 trillion KRW (approximately 9.383 million KRW per pyeong), with a total construction period of 58 months.
They also offered unprecedented financial benefits. They proposed a maximum 4-year grace period for association members' contribution repayments and guaranteed a minimum relocation cost of 1.2 billion KRW. To reduce the burden from construction cost increases, they pledged to cover up to 31.4 billion KRW of cost increases due to inflation before construction starts. The total project cost is about 3 trillion KRW, with a fixed interest rate of CD rate + 0.78%. They also announced plans to increase the number of general sale units to guarantee additional sales income for association members.
A Samsung C&T official said, "It seems that our differentiated proposal, which can enhance the value of Hannam 4 District, received a good evaluation," adding, "We sincerely thank the association members and promise to repay them with the best apartments."
Meanwhile, Hannam 4 District is a redevelopment project of the 360 area of Bogwang-dong, Yongsan-gu, Seoul, constructing 51 buildings with 2,331 apartment units and ancillary welfare facilities, ranging from 7 basement floors to 22 above-ground floors. Located between Seobinggo Station and Hannam Station on the Gyeongui-Jungang Line, it is considered prime land in the northern part of Seoul. With construction costs approaching 1.6 trillion KRW, it has been regarded as the largest redevelopment project in Seoul. Especially, due to its high ratio of general sales, it is evaluated as having the highest business feasibility among Hannam New Town projects.
Likely to Face GS Engineering & Construction at Jamsil Woosung... A Step Closer to Entering Apgujeong
The result of Hannam 4 District was a hot topic in the construction industry. It was the first time in 15 years that the top two construction companies faced off, and it was a rare competitive scenario in the maintenance industry, where most construction rights are awarded through negotiated contracts. It was also seen as a preliminary battle for upcoming major complex contract competitions.
With Samsung C&T maintaining its pride as the industry leader, attention is focused on how the future competition for construction rights will change. In the short term, there is a high possibility that Samsung C&T will face GS Engineering & Construction in the reconstruction of Woosung in Jamsil, Songpa-gu, scheduled for March this year. Large-scale maintenance projects in Apgujeong, Seongsu, and Mokdong are also preparing to select construction companies. Samsung C&T and Hyundai Engineering & Construction are expected to compete again for the construction rights of the Apgujeong 3 District apartment reconstruction.
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