The reconstruction market in Seoul's Gangnam district is entering a competitive phase this May. With the selection meetings for construction companies for Apgujeong districts 3, 4, and 5 scheduled throughout the month, major reconstruction projects in Shinbanpo and Songpa are also gaining momentum. Industry experts are viewing this month as a critical turning point for Gangnam reconstruction.
According to the construction industry on May 12, selection meetings for construction companies are set to take place in Apgujeong and Shinbanpo, the two main battlegrounds for reconstruction in Gangnam.
Specifically, districts 3 to 5 of the Apgujeong reconstruction project will finalize their construction companies this month. The six districts in Apgujeong are expected to accommodate between 11,000 and 12,000 households, with the construction costs for the three districts currently in the selection process exceeding 10 trillion won. The symbolic significance of the prime riverside location has intensified brand competition among construction firms.
The first meeting will be held for Apgujeong district 4 on May 23, where Samsung C&T, selected as the preferred bidder last month, is likely to be confirmed as the construction company.
On May 25, Apgujeong district 3 will hold a meeting to vote on selecting Hyundai Engineering & Construction as its contractor. This district, with a planned 4,121 units, is considered the largest single reconstruction site in Gangnam, with construction costs estimated at approximately 5.5 trillion won.
The most intense competition is expected in Apgujeong district 5, where construction costs are around 1.496 trillion won. A meeting will take place on May 30 to decide between Hyundai Engineering & Construction and DL E&C. Both companies will hold a joint briefing on May 16, followed by a second briefing on the day of the meeting to sway the opinions of the members. Recently, competition has intensified over high-end brands, community features, and specialized designs, leading to rapidly increasing bidding conditions.
According to the Gangnam District Office's housing construction project status, as of January, districts 2 to 5 in Apgujeong have all completed the establishment of their associations. Notably, Apgujeong district 3, which has faced delays since receiving its establishment approval in 2021, is expected to gain momentum with the upcoming selection process. There are expectations that the projects in the Apgujeong area, which have been stalled due to changes in maintenance plans and regulatory issues, will finally move forward following this bidding war.
![Hanbomido Mansion in Daechi-dong. [Photo=Woo Joo-sung]](https://image.ajunews.com/content/image/2026/05/12/20260512151838937166.jpg)
The selection meetings for the Shinbanpo districts 19 and 25 will also take place on May 30. Although this project involves a smaller scale of 614 units and construction costs of about 443.4 billion won compared to Apgujeong, its riverside location allows for a potential 49-story design, making it likely to become a landmark in the Seocho area.
In this project, Samsung C&T and POSCO E&C will compete against each other. This marks the first time since January 2024 that the two companies have faced off at the same site, where POSCO E&C previously won a bid.
The reconstruction fervor is also rapidly spreading to Songpa District. The redevelopment of the Machon 5 area has received its association establishment approval in January after 19 years of efforts. The association announced a bidding notice last month, with six construction firms, including Hyundai Engineering & Construction, Lotte Engineering & Construction, DL E&C, IPARK Hyundai Industrial Development, Jeil Construction, and Kumho Construction, attending the site briefing. The estimated construction cost is around 1.069 trillion won, with the bidding deadline set for June 15. This area is expected to emerge as a significant battleground following the major bids in Gangnam.
In the Seongsu Strategic Maintenance Zone, Daewoo Construction and Lotte Construction have resumed their bidding processes, and the selection of a construction company for the Mokdong reconstruction site is also expected to gain traction in the second half of the year.
Ko Jun-seok, a professor at Yonsei University's Sangnam Business School, stated, "The project conditions and design standards presented in the Apgujeong bidding war are likely to set benchmarks for future maintenance project bids."
* This article has been translated by AI.
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