As the competition for redevelopment projects in Yeouido, located in Seoul's Yeongdeungpo District, intensifies, major construction firms are actively pursuing not only large-scale projects but also smaller, lucrative sites. In light of rising construction and financing costs, these companies are adopting a selective bidding strategy that prioritizes location and project viability over mere expansion.
According to the construction industry on July 2, interest from large construction firms in small-scale redevelopment projects in Yeouido is growing. Hyundai Engineering is focusing on the Gwangjang Apartment 38-1 redevelopment project, which consists of 414 units, while Daewoo Construction is showing interest in the Hwarang Apartment redevelopment, which has 160 units.
A notable example is Hyundai Engineering. Industry insiders expected the firm, which has recently succeeded in several redevelopment projects in Apgujeong, to participate in the largest redevelopment site in Yeouido, the Sibeom Apartment. However, Hyundai did not attend the site briefing for Sibeom and Mokhwa Apartments, opting instead to participate solely in the briefing for Gwangjang Apartment 38-1, indicating a focus on smaller projects.
The Gwangjang Apartment 38-1 project will be redeveloped on a site of 10,167 square meters, featuring four basement levels and a maximum of 52 above-ground floors, totaling 414 units. Although the number of units is relatively small, the site boasts a prime location near Yeouido Station on Seoul's Subway Lines 5 and 9.
A representative from Hyundai Engineering stated, "While Gwangjang 38-1 has a limited number of units, its symbolic significance, excellent floor area ratio, and prime location make it a viable project."
Daewoo Construction, having secured the construction rights for the Gongjak Apartment, is also interested in the Hwarang Apartment, which is uniquely pursuing a small-scale redevelopment approach in Yeouido.
The Hwarang Apartment project is subject to the Special Act on the Maintenance of Vacant Houses and Small-Scale Housing. The site covers 9,395 square meters, currently housing 160 units, and will be transformed into 244 units across a maximum of 47 floors after redevelopment. Unlike typical redevelopment projects, this initiative allows for a faster process as it bypasses the usual planning and approval procedures.
A representative from Daewoo Construction remarked, "Yeouido is a strategically important area. Following the Gongjak Apartment, we see Hwarang Apartment as a site where we can showcase our high-end brand 'Summit,' and we are actively considering bidding for its redevelopment."
Son Jang-su, chairman of the Hwarang Apartment association, noted, "We plan to announce the bidding for construction companies on the 20th and hold a site briefing on the 28th. Currently, Posco E&C, Daewoo Construction, and Jai S&D have shown interest."
Industry experts cite the high project viability and brand impact as reasons for large construction firms' interest in small-scale redevelopments in Yeouido. Despite the smaller scale, the symbolic significance of Yeouido allows for higher expected sale prices, which could positively influence future bids for other redevelopment projects in the area.
Kim Je-kyung, CEO of Tumi Real Estate Consulting, stated, "The interest of large construction firms in small-scale redevelopments stems from the symbolic significance of Yeouido. The project's viability is more important than its size, as Yeouido can expect high sale prices, ensuring sufficient profitability even for smaller projects."
Meanwhile, several aging complexes, including Hwarang Apartment, are currently pursuing redevelopment in Yeouido. The Daegyo, Hanyang, and Gongjak Apartments have already selected construction firms, while Sibeom, Mokhwa, and Gwangjang Apartment 38-1 are in the process of selecting contractors.
* This article has been translated by AI.
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