Site Briefing Scheduled for the 29th, Five Companies Attend Preliminary Sessions
Attention Focused on Whether Samsung C&T, Highly Preferred by Association Members, Will Join
Daewoo E&C Has Long Targeted This Project
Lotte and POSCO Highlight Their High-End Brands
Construction companies are fiercely competing for the reconstruction project of Gaepo Useong 7th Complex near Daecheong Station on Subway Line 3. Even a month before the official site briefing, five construction firms held preliminary information sessions for residents.
According to the Gaepo Useong 7th Reconstruction Association on April 23, a site briefing for selecting the construction company will be held on April 29. As stated in the construction company selection notice released the previous day, only companies that attend the site briefing will be eligible to bid. The bid deposit is set at 30 billion won, and consortium bids are not allowed. The bidding deadline is June 19. The association has set the construction cost at 8.8 million won per pyeong (3.3 square meters), with the total construction cost estimated at 677.8 billion won.
This complex, located at 615 Irwon-dong, Gangnam-gu, Seoul, was completed in December 1987 and consists of 15 buildings with up to 14 floors and a total of 802 units. After reconstruction, it will be transformed into a complex with 1,122 units in buildings ranging from five basement levels to 35 above-ground floors.
Since last month, the association has been holding preliminary information sessions for residents at a promotional booth within the complex. Samsung C&T, Daewoo E&C, Lotte E&C, POSCO E&C, and GS E&C participated in these sessions, answering residents' questions. Each company introduced its corporate profile, reconstruction project schedules, track records in maintenance projects, and future residential technology trends during the preliminary sessions.
Samsung C&T employees are explaining to residents at a booth set up within the Gaepo Useong 7th complex. Photo by Samsung C&T
As major construction firms focus their attention on this project, some predict that at least a three-way competition may emerge. In particular, there is growing interest in whether Samsung C&T, which has been actively pursuing maintenance project orders this year, will participate in the bidding.
Samsung C&T did not participate in the bidding for Jamsil Useong 1, 2, and 3 complexes or Gaepo Jugong 6 and 7 complexes, but has been considering Gaepo Useong 7th as a key target for new orders. The company enjoys strong preference among association members in terms of brand management and recognition, and if it participates, its chances of winning the order are considered high. Samsung C&T also plans to collaborate with Arcadis, a global architectural design firm responsible for projects such as Apgujeong District 4. A Samsung C&T representative stated, "We will do our utmost to present the best possible business conditions befitting the reputation of Korea's top apartment brand, so that we can be chosen by the association members."
Daewoo E&C has reportedly been making efforts to win the Gaepo Useong 7th project for a long time. If it wins this project following its successful bid for Gaepo Jugong 5 Complex in August last year, it is expected to further solidify the recognition of its 'Summit' brand in the Gaepo area. A Daewoo E&C representative said, "We are actively considering participating in the bidding and plan to propose the best business conditions and landmark designs that the association members desire."
Lotte E&C, which has won major maintenance projects in Gangnam such as Cheongdam, Jamsil, and Banpo, currently has no ongoing projects in Gaepo and is therefore actively pursuing this order. The company is also actively promoting itself through advertisements within the complex and on subways and buses. A Lotte E&C representative explained, "We are doing our best to win the Gaepo Useong 7th project."
POSCO E&C is also taking an active approach in the Gaepo area, emphasizing the application of its high-end brand. There is speculation that the company's bidding strategy may change depending on the outcome of the bidding for Yongsan Maintenance Depot Zone 1, where it is competing with HDC Hyundai Development Company. A POSCO E&C representative explained, "During the preliminary information session, we focused on the fact that this is the final piece of the maintenance project puzzle in Gaepo and highlighted 'Othier,' which is being introduced in Gangnam for the first time."
An industry insider commented, "Not only for Gaepo Useong 7th but also for Gaepo Useong 4th, associations are holding preliminary information sessions to secure construction companies early. Whether construction firms will participate in the bidding for other key projects, which requires careful selection and focus, will become clear after the site briefing."
As the maintenance project for Gaepo Useong 7th gains momentum, transaction prices have also reached new highs. On March 8, an 84-square-meter unit was sold for 2.8 billion won, setting a new record. Just before the expansion of the land transaction permit zone on March 21, a 68-square-meter unit was traded for 2.275 billion won, again reaching a record-high price.
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