Seven Companies, Including Hyundai, GS, and Samsung C&T, Attend Site Briefing
Hyundai Engineering, Despite Efforts, Opts Out Due to Housing Business Review
The Jangwi 15 District, with a project cost of 1.5 trillion won, is set to select a construction company. As Hyundai Engineering, which had been aiming to win the Jangwi 15 District project, opted out citing a review of its housing business, competition among other construction companies has intensified.
On May 7, the site briefing session for selecting a contractor for the Jangwi 15 District redevelopment and maintenance project was attended by seven companies: Hyundai Engineering & Construction, Lotte Engineering & Construction, Samsung C&T, GS Engineering & Construction, HDC Hyundai Development Company, Kumho Engineering & Construction, and Jeil Construction, according to confirmations on May 8.
The Jangwi 15 District redevelopment project, located at 233-42 Jangwi-dong, Seongbuk-gu, involves the construction of 3,317 residential units in 37 buildings, ranging from five basement levels to 35 above-ground floors. The construction cost proposed by the association is 8.3 million won per 3.3 square meters, making the total construction cost approximately 1.4662 trillion won. The association specified that joint contracts are not allowed as a bidding condition. A bid deposit of 50 billion won must be paid. Companies that have been penalized for offering or promising money or entertainment, or have had their bids or selections invalidated or canceled, are restricted from participating in the bidding process.
Despite having put significant effort into winning the Jangwi 15 District project, Hyundai Engineering did not participate in the site briefing session. Construction companies that do not attend the briefing session cannot submit bids or win the contract. It is unusual for Hyundai Engineering not to attend, as companies typically attend such sessions to monitor trends, regardless of whether they intend to participate in the bidding. A Hyundai Engineering representative explained, "We have suspended new orders in the housing business and are undergoing a review period, which is why we did not attend the site briefing session."
Given that association members tend to prefer large construction companies, Hyundai Engineering & Construction, the parent company, is likely to have a high chance of winning the contract if it actively pursues the project. A Hyundai Engineering & Construction representative stated, "Our participation is not because Hyundai Engineering withdrew; we have been interested in this project and communicating with association members for the past three to four years." Lotte Engineering & Construction, which does not have a project site within Jangwi New Town, is also actively involved. A Lotte Engineering & Construction representative said, "This is a project we are watching closely, and we are actively considering bidding."
An association representative commented, "If the bidding proceeds smoothly, we hope to hold the contractor selection general meeting by the end of August. We plan to complete the contractor selection within the year and begin architectural reviews and related procedures. We aim to obtain project implementation approval next year."
The Jangwi 15 District is the closest to Sangwolgok Station on Line 6 within the Jangwi New Town area. In 2018, the Seoul Metropolitan Government revoked the redevelopment promotion district designation by administrative authority, but after a lawsuit to confirm the invalidity, residents won in 2021, and the association received establishment approval in March 2022. Of the 15 districts in Jangwi New Town, six have completed occupancy, and nine are currently under development.
In Jangwi 8 District, where public redevelopment is underway to build 2,801 residential units, Samsung C&T was selected as the contractor, and the complex has been named "Raemian Trigent." In Jangwi 9 District, a consortium of DL E&C and Hyundai Engineering & Construction was selected as the contractor, and public redevelopment is being pursued for 2,270 residential units. Jangwi 12 District has been designated as a public housing complex project site, while Jangwi 13-1 and 13-2 Districts have been selected as candidates for the fast-track integrated planning program.
As new complexes begin occupancy in the Jangwi New Town area, sales prices continue to rise. For example, the exclusive 59-square-meter unit in Jangwi Xi Radiant (Jangwi 4 District), which began occupancy in late March, set a new record at 1.17517 billion won in March. The 84-square-meter unit reached a record 1.395 billion won on the 7th of last month. In Jangwi 6 District, a pre-sale right for an 84-square-meter unit in Prugio Radius Park was traded at 1.29194 billion won, about 50 million won higher than the previous record.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
