[Exclusive] DL E&C to Open Showroom in Apgujeong... Preparing to Bid for Districts 4 and 5 [Real Estate AtoZ]

Ahead of Next Month's Bidding Announcement for Apgujeong Districts 4 and 5
DL E&C Building Showroom Near Dosan Park
Hyundai, Samsung, DL, GS, and Daewoo Show Interest in District 4

As Apgujeong District 4, with a total project cost of 2 trillion won, and District 5, with a project cost of 1.5 trillion won, are set to begin selecting construction companies early next year, DL E&C is opening a new exhibition hall. The company aims to establish this space as a forward base to compete against Hyundai Engineering & Construction and Samsung C&T, in the race to create a new Apgujeong landmark.

Construction site of the Acro brand showroom, which DL E&C is preparing to open near Dosan Park. Photo by Jinju Han

According to the real estate industry on December 24, DL E&C recently signed a lease contract for a commercial building near Dosan Park in Sinsa-dong, Gangnam-gu. The contract is for the opening of a brand showroom. The building is currently covered with tarps as interior construction is underway. A DL E&C representative stated, "We are preparing a space to showcase the value of our high-end residential brand, Acro, but the opening date has not yet been decided."

This showroom is expected to serve as a forward base not only for Apgujeong but also for securing major redevelopment projects throughout the Gangnam area. Previously, the company used the 'Acro VIP Lounge' located in D Tower Seoul Forest in Seongsu-dong for such purposes.

DL E&C Joins the Apgujeong Bidding War

Recently, as competitors have opened exhibition halls in Apgujeong one after another, DL E&C has reconsidered its strategy. Hyundai Engineering & Construction and Samsung C&T have been operating showrooms targeting Apgujeong cooperative members for the past seven months. Since this spring, Hyundai Engineering & Construction has opened the 'Apgujeong Hyundai' exhibition hall on Apgujeong-ro. Using 'Apgujeong Hyundai' as the complex name, the company succeeded in winning the contract for District 2. Currently, it is accepting applications from cooperative members to explain the business terms for District 2 and to promote its brand and strengths.

Regarding the bidding for District 4, a Hyundai Engineering & Construction official said, "We are watching with great interest." Samsung C&T opened the 'Apgujeong S. Lounge' across from the Apgujeong apartments in May, launching its own promotional campaign targeting cooperative members. DL E&C has been engaging with cooperative members of District 4 and conducting sales activities for the past three to four years.

In addition to these companies, GS Engineering & Construction and Daewoo Engineering & Construction are also reportedly interested in District 4. An industry insider explained, "More than five construction companies are actively pursuing contract bids with Apgujeong cooperative members through model houses or lounges," adding, "With many redevelopment projects scheduled for next year, companies are expected to selectively target only the most promising sites."

Exterior view of Apgujeong Hyundai Exhibition Hall operated by Hyundai Engineering & Construction. Photo by Jinju Han

Tension Mounts in Apgujeong Ahead of January Announcement

District 4 is moving at the second-fastest pace after District 2. The District 4 cooperative plans to announce the construction company selection notice around January 14 next year. If there are no failed bids, the general meeting for selecting the construction company will be held around May. The construction cost for District 4 is expected to be set at approximately 12.1 million won per 3.3 square meters, which is about 600,000 won higher per 3.3 square meters than District 2, which began the selection process earlier at 11.5 million won per 3.3 square meters.

District 4 consists of Hyundai 8th Apartment and Hanyang 3rd, 4th, and 6th complexes, and is planned to be rebuilt into a maximum of 67 stories with 1,664 units. Of these, 193 units will be rental housing and 130 units will be general sales. In October, a 107-square-meter unit in Hyundai 8th Apartment was sold for 5.95 billion won, setting a new record high. In September, a 163-square-meter unit changed hands for 7.4 billion won.

According to the cooperative's preliminary estimated contribution guide, if a resident of Hyundai 8th Apartment with a 35-pyeong unit chooses an exclusive 84-square-meter unit, the estimated contribution is 750 million won; for a 54-pyeong unit selecting a 124-square-meter unit, the estimated contribution is 1.178 billion won. For Hanyang 4th Complex, choosing an 84-square-meter unit from a 33-pyeong unit would require an estimated contribution of about 934 million won.

A District 4 cooperative representative stated, "At this stage, we have only provided rough estimates for the purpose of surveying members' preferred unit sizes, and we will provide more detailed estimated contributions after the construction company is selected."

Exterior view of Hyundai 8th Apartment in Apgujeong District 4. Photo by Hanjinju