Hanshin Gongyeong Wins 603.9 Billion Won Hoewon 2 District Redevelopment and Maintenance Project

Contract Signed Worth 603.9 Billion Won
Creating a Landmark Residential Complex in Changwon

Hanshin Gongyeong announced on the 5th that it has won the redevelopment and maintenance project for the Hoewon 2 District, located in Masan Hoewon-gu, Changwon-si, Gyeongsangnam-do.

Rendering of the Changwon Hoewon 2 District redevelopment. Provided by Hanshin Engineering & Construction.

The Hoewon 2 District project that has been awarded this time is a large-scale development to construct 21 apartment buildings with 3 basement floors and 27 above-ground floors, totaling 2,016 units along with ancillary welfare facilities, in the area around 480-31 Hoewon 2-dong, Masan Hoewon-gu, Changwon-si, Gyeongsangnam-do. The project site is evaluated as an area with high future value, as it offers excellent living infrastructure such as transportation, convenience, and educational facilities, and is slated for major development benefits including the creation of a self-sufficient mixed-use administrative town, the Masan Station next-generation transfer center, and the Changwon urban railway project.

In particular, the Hoewon 2 District will be a mammoth-scale complex with around 2,000 households, and differentiated community facilities such as a sky lounge and swimming pool are planned within the complex. The project is being pushed forward with the goal of starting construction in April this year and beginning sales in June. Upon completion, it is expected to establish itself as a landmark complex representing Changwon.

Near the project site, neighboring districts such as Hoewon 1 District (Changwon Lotte Castle Premier, 999 units), Hoewon 3 District (E-Pyunhansesang Changwon Park Central, 1,253 units), and Gyobang 1 District (Changwon Prugio The Platinum, 1,538 units) have already been occupied. Yeongdeok 2 District (Changwon Lotte Castle Centum Gold, 956 units) and Yangdeok 4 District (Changwon Lotte Castle Harbor Palace, 981 units) previously recorded high subscription competition, with average subscription rates of 62 to 1 and 21 to 1, respectively.

The Changwon area is projected to see its annual average supply of new move-in units drop sharply to about 30% of the previous level after 2026. For this reason, interest in newly launched apartment projects is expected to grow even further. In fact, while approximately 8,000 units were put on the market in 2021 and about 6,000 units in 2022, supply plunged to around 400 units in 2023 and about 600 units in 2024. In particular, Hoewon-gu has had no new apartment launches at all since 2022.

Despite the recent downturn in the presales market and construction industry, Hanshin Gongyeong has built a stable order portfolio by focusing on urban redevelopment projects and public-sector construction as its core bidding strategy. The company has continued a strategy of selectively securing large-scale maintenance projects with excellent locations in prime sites in Seoul and the greater metropolitan area, as well as major provincial metropolitan cities, thereby securing both profitability and project stability. The award of the Hoewon 2 District project is regarded as a case that demonstrates this strategy has translated into tangible results.

A Hanshin Gongyeong official stated, "This year as well, we are concentrating our order portfolio on urban redevelopment projects that offer high profitability and strong project stability," adding, "We will continue to pursue redevelopment orders in line with this bidding strategy going forward."

Meanwhile, Hanshin Gongyeong joined the "1 trillion won club" for urban redevelopment orders in 2023 and went on to post results approaching 1 trillion won in 2024 from redevelopment projects centered in Seoul and the greater metropolitan area. In the second half of this year, the company plans to focus on expanding redevelopment orders, centering on large-scale maintenance projects in the Seoul metropolitan area and in provincial metropolitan cities with strong locations.

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