[imText1]It is difficult for North Koreans to buy their own houses. It is the same as ‘taking stars from the sky’ On the other hand, houses are in great demand. Because of this, North Koreans secretly deal with national or cooperative union-owned houses.
Because land, houses, and real estate are registered to be national properties, it is illegal for individuals to traffic them among. However, now the trafficking is out of control. It is because, whoever they are, officials and general people consider the secret dealings as a matter of course.
Prices of single-story houses near Jangmadang increased up to millions of won, and houses in the country are dealt at several tens of thousands of won. It shows that the price differentials between houses in cities and ones in countries are significantly unbalanced. Although most of the residents are engaging in commercial business, it is not easy for ordinary workers to buy their own houses given their wages are from 2,000 to 5,000 won ($0.6 – 1.6).
It is said that recently apartment prices at the center of cities such as Pyongyang and Shinuiju soared 20 ~30 million won (6,670~10,000 dollars). It is also known that recently residents who were removed to other places from Shinuiju were caught secretly selling their houses and their money was confiscated.
NK, Who Constructs the Houses?
North Korea’s houses are categorized into three ownerships: the government, the cooperative union, and individuals. State-owned houses are maintained by City Management Department of People’s Committee governing the houses. Cooperative union-owned houses are under control of cooperative organizations such as collective farms, and individual-owned houses registered under the individual owners’ names.
State-owned houses are constructed by the City Construction Office. It followed a housing construction plan, yet from the early 90’s its construction stopped. The City Construction Office entrusts the City Management Department of People’s Committee with the completed houses. The City Management Department consigns some of them to certain organizations concerned, and distributes others to ordinary people. The City Management Department has the ‘Housing Inspection Board’ which controls the dealings, rent, and lease of the houses.
Residents can move into their houses after getting a ‘residents certificate’ from the City Management Department. Before the Economy Management Action launched on Jun 1, 2002 , the housing purchase prices (government-fixing prices) that the ‘residents certificate’ guarantees, were as low as 180 to 1,000 won ($0.06 – 0.33). Yet, after the Action, they increased it by 1,000 ~10,000won ($0.33 – 3.33). As the ‘residents certificate’ guarantees, the houses are registered in the owners’ names, but because it does not have any ownership concept to it, the owners cannot sell the houses. ‘Management expenses’ are paid by the owners. The ‘management expenses’ are roughly 100 won including water rates, broadcasting charges, and electricity expenses.
Illegal Housing Sales, How It Works?
In the case of changing the owner’s name for the reason of modifications by use and moving, the owner must get permission from the City Management Department. However, because of inactive housing construction, the supply does not meet the demand. So, illegal housing dealings, rent, and lease happen among the residents.
The Illegal housing dealings are possible in the form of mutually ‘nominal transfer’. If the seller is A and the buyer is B, B ‘lives together’ in A’s house during a certain period under the agreement. A goes to the City Management Department and declares that ‘I would like to exchange my house with B’s house’, and finally demands the names of the ‘residents certificate’ to be changed
At this point, it is necessary to give housing inspectors working at the City Management Department some bribes. That is, the illegal dealings are done with connivance. All the work of the housing inspectors is to sign their names on the paper containing the items which both parts mutually understood. But, the money interchanged between A and B is in secret. If it happens to be revealed, A cooks up a good reason, saying that it was the expense for decorating the new house. The sale price includes a premium, a decoration expense, and a housing site price.
If a conflict happens between A and B. It is usually because of a lower payment or broken promises. If the conflict is worse and not meditated, the City Management Department confiscates the houses. If there is disobedience, the case which is requested to a prosecuting authority and police office will be dealt by the related law.
The cooperative union does not allow people other than their own staff to live in their governing houses. No sales and rent are permitted. In the case that a staffperson stops working there, he or she should leave the house. The way illegal housing sales of the cooperative union occur are similar to the one of the nation-owned houses.
Staffs working for the Party, Administrative Ministry, and Law Authority organizations live in a certain dwelling site of a certain district. If they are laid off for their mistakes, then they have to leave the houses. In case of personnel changes, they can live in the former houses. The houses in which high-ranking officials live are rarely sold because of others’ opinions.
There are Individuals-Owned Houses
There are individuals-owned houses in North Korea. They are usually located in countries, not in cities. After the regime establishment, most of the individuals-owned houses were confiscated by the Land Reform. However, if they were not capitalists, wealthy farmers, or middle-class farmers, the individuals-owned houses, especially those inherited from their ancestors, were permitted to be owned. Because housing sites and fields attached to them are registered in individuals’ names, in case of others moving in, the owners have a right to sell the house.
In the case where the individual houses are included in the list of ‘forced removal’, the owners can build their houses at other sites that the Ministry of Land Administration had given them. Although the Ministry of Land Administration gives as much land as the lost one, the new land can not be sold.
