Hyundai and GS Smile, DL Stumbles... Diverging Fortunes for Top 5 Builders in Urban Renewal Orders in H1 [Real Estate AtoZ]

Top Five Builders Secure 21 Trillion Won in New Urban Renewal Orders
Hyundai and GS Surpass 7 Trillion Won in New Contracts Over Five Months
DL E&C Lags Behind with Weak Performance in the First Half
Seongsu and Mok-dong to See Major Contractor Selections in the Second Half

This year in Seoul, a fierce competition among major construction companies is unfolding over 80 trillion won worth of contracts centered around key redevelopment sites along the Han River Belt, commonly referred to as "Ap-Yeo-Mok-Seong" (Apgujeong, Yeouido, Mok-dong, Seongsu). While Hyundai Engineering & Construction and GS Engineering & Construction each secured new orders worth around 7 trillion won in the first half of the year, DL E&C has yet to achieve its first order, lagging behind its competitors.

According to the urban renewal industry on June 3, the top five construction firms by construction capability evaluation (Samsung C&T, Hyundai Engineering & Construction, Daewoo Engineering & Construction, DL E&C, and GS Engineering & Construction) secured a total of 21.3273 trillion won in new urban renewal orders from January to May this year. Of these, Hyundai Engineering & Construction led the pack with 7.6946 trillion won, followed by GS Engineering & Construction with 7.4694 trillion won, Samsung C&T with 3.248 trillion won, and Daewoo Engineering & Construction with 2.9153 trillion won.

Hyundai Engineering & Construction has already surpassed half of its annual target of 12 trillion won in urban renewal orders. On May 30, the company secured the construction contract for the Apgujeong District 5 redevelopment project, and previously also signed a private contract worth 5.561 trillion won for Apgujeong District 3.

GS Engineering & Construction has also nearly reached its annual target of 8 trillion won in new orders over the past five months. The company won contracts for Songpa Hanyang Phase 2 (685.6 billion won) and Gaepo Woosung Phase 6 (215.4 billion won) at the beginning of the year, then secured the construction contract for District 1 in the Seongsu Strategic Redevelopment Area (2.154 trillion won) in April, the first district to start selecting a contractor. On May 30, GS Engineering & Construction was selected as the new contractor for the redevelopment of Seongnam Sangdaewon District 2 (1.9217 trillion won).

Samsung C&T began its new orders this year with the Daechi Ssangyong Phase 1 reconstruction project (689.2 billion won) in April, then won a private contract for the Apgujeong District 4 reconstruction (2.1154 trillion won). Last month, the company secured the construction contract for the integrated reconstruction of Shinbanpo 19·25 (443.4 billion won). Samsung C&T has raised its annual target for urban renewal orders by 70%, from 7.7 trillion won to 13 trillion won.

Daewoo Engineering & Construction kicked off the year by securing its first contract with the Busan Sajik District 4 redevelopment project, worth 792.3 billion won, in January. This was followed by a series of wins, including the Shini-mun Station area redevelopment (529.2 billion won) and Ansan Gojan Yeonrip Phase 5 (486.4 billion won), bringing the total to six projects. The company is currently competing with Lotte Engineering & Construction for the Seongsu Strategic Redevelopment District 4 bid in Seoul and is actively considering participating in the bids for Mok-dong New Town Complexes 8, 11, and 14.

In contrast, DL E&C has shown sluggish performance in the first half of the year. Although it was recently selected as the preferred bidder for the Mok-dong Complex 6 reconstruction project (worth 1.2868 trillion won), the company has yet to record any new urban renewal orders over the past five months, making it urgent to secure contracts in the second half. Furthermore, its plant business order backlog in the first quarter of this year (2.1291 trillion won) decreased by more than half compared to the same period last year (4.337 trillion won), heightening the need to fill the gap through the housing sector. As a result, DL E&C is expected to actively participate in bidding for projects such as Seongsu Strategic Redevelopment District 2 in the second half of the year.

The urban renewal industry is now focused on the bidding wars expected in Yeouido, Seongsu, and Mok-dong in the second half of the year. In Mok-dong, bids for construction contractors for Complexes 4 and 8 of the Mok-dong New Town (out of a total of 14 complexes) are set to be announced in July and August. Bids for Seongsu Strategic Redevelopment Districts 2 and 3 are expected to be announced this month and later in the second half of the year, respectively. In Yeouido, both the Sibeom and Mokhwa Apartment complexes announced contractor bids last month and have begun the process of selecting contractors in earnest.

An industry insider commented, "Projects along the Han River, such as Apgujeong and Yeouido, are not only highly profitable but also hold symbolic significance that will determine future brand competitiveness," adding, "Construction companies will fiercely compete to secure contracts for these key sites along the Han River Belt."

This content was produced with the assistance of AI translation services.