20s-30s Buyers Drive Surge in Sole Bids for Non-Gangnam Reconstructions

Young people in their 20s and 30s in Seoul are flocking to early-stage reconstruction projects in non-Gangnam areas that are over 40 years old, showing an investment trend to preempt future value. They are exhibiting buying sentiment, focusing on complexes where they can utilize loan limits under 1.5 billion won. Mimisama in Nowon District recorded 18 land transaction permit approvals over ten days, while Guro Jugong Apartments 1 and 2 recorded 15.

Construction companies, burdened by rising costs and declining profitability, are reluctant to compete for urban redevelopment project bids, making sole bids followed by direct contracts the prevailing trend. Cases of intense competition among major builders disappearing have emerged, such as Hyundai Engineering & Construction being the sole bidder for Apgujeong District 3, a project valued at 5.561 trillion won in total construction costs, and DL E&C being the only bidder for Mokdong Complex 6.

This phenomenon is acting as a factor bringing changes to the housing opportunities for young people and urban development.