Competition is intensifying between Hyundai Engineering & Construction and DL E&C as the selection of a builder for Apgujeong District 5, one of Seoul’s biggest redevelopment battlegrounds, nears.
Industry officials said Monday the contractor will be chosen at a homeowners association general meeting on May 30. The project will rebuild the Hanyang 1st and 2nd apartment complexes near 490 Apgujeong-dong in Seoul’s Gangnam district into eight buildings ranging from five basement levels to as high as 60 stories, with 1,397 households. Total project costs are estimated at about 1.5 trillion won.
While some observers say Hyundai E&C has an edge on the strength of the “Apgujeong Hyundai” brand, DL E&C is countering with financing terms and changes to the project structure aimed at improving profitability.
DL E&C said Monday its bid proposal is designed to reduce members’ financial burden by basing construction costs on project feasibility, cutting financing expenses and optimizing technology.
The company proposed a construction cost of 11.39 million won per 3.3 square meters, more than 1 million won below the association’s planned estimate. DL E&C said it is focusing not only on price but also on structurally limiting the risk of cost increases.
DL E&C also proposed differentiating the 29 units slated for general sale with high-end designs such as penthouses to maximize revenue. It said it would seek to raise the sale price of about 5,060 pyeong of commercial space through cooperation with a global specialist firm, and included a plan for the builder to bear construction costs.
To reduce risk, DL E&C proposed directly purchasing unsold units on favorable terms if they occur.
“In a situation where external factors are driving large swings in project costs, we designed a structure that considers both members’ burden and project feasibility,” a DL E&C official said. “It is a proposal that reflects revenue expansion, cost reduction and risk defense.”
Earlier, DL E&C proposed setting the interest rate on required project financing at a “zero added spread” level, and shortening the construction period to 57 months to reduce interest costs. It also proposed relocation loans with a loan-to-value ratio of 150% to ease funding pressure.
Hyundai E&C is emphasizing advanced technology and premium housing features. It proposed 100% Han River views for all households, a panoramic “zero-wall” design offering up to 240-degree views, and ceiling heights of up to 3 meters to enhance openness.
It also plans to introduce robotics-based residential services, including a demand-responsive transport unmanned shuttle developed with Hyundai Motor Group, along with delivery, parking and charging robots. Hyundai E&C said it will build large community facilities and loop-style community spaces, and offer membership-based services linked to luxury retail.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.