North Korea has seen a protracted period of market stability
of late, which appears to have triggered rising property values, Daily NK sources say. In times of instability
families are more likely to remain together in one location, but more and more households are splitting to take advantage of moderate economic improvements.
North Korea’s property market is heavily linked to the price of rice. At this time last year, rice
prices in parts of Yangkang Province were close to 7000 won per kilo; this has
now dropped to around 4500 in Hyesan and as low as 4000 won per kilo in
Pyongyang. These prices appear stable for the time being, as supplies are arriving and the authorities have not implemented any policies detrimental to market development.
A source from South Pyongan Province told Daily NK over the
weekend, “Rice is stable, and so more and more people are looking to buy houses. I looked for a place, and found it was impossible around the jangmadang [markets] and train stations; they’re all gone. Last autumn there were lots of
people wanting to sell apartments near the train station but now market food prices
are stable and not one of them wants to sell.”
The source explained that this time last year a single storey
house in the vicinity of a market was valued at approximately US$4000, but would currently be
worth 20% more. An apartment in a block under construction near a train
station fetches closer to US$20,000.
A second source from Yangkang Province told Daily NK that the
best 40 pyeong apartments in Hyesan
were being traded last year for 120,000 – 130,000 Chinese yuan, but this year the same
apartments are going for 150,000 yuan. Lower-end 12 pyeong
apartments can be bought for 15,000 yuan. High-end single storey houses are going
for 20,000 yuan, and lower-end houses for 500 yuan.
Furthermore, “5500 yuan can get you a medium sized house in a
small area like Kim Jong Suk County; this would not be possible in Hyesan. Someone told me that her daughter is getting
married this spring and the 5000 yuan she’s saved on food has gone into buying
a house. People are now realizing that
houses are assets, and they are taking notice.”
“March and April are a good time to move house because
the weather gets warm then. It’s also the best time to carry out extensions and new
construction work. If rice prices
stay stable then property prices can only rise,” the source explained.
In today’s active housing market, sources report that the most critical issue is ensuring that the state permits use of the property. When North Koreans are assigned houses by the state
they receive documents issued by the housing distribution arm of
their provincial People’s Committee. These enshrine the
right to use the property, but in a state socialist economic structure that does not indicate ownership.
However, as there is no specified time
limit, the permit is akin to a certificate of ownership. Nevertheless, the legal situation is murky and people have to be careful.
