Hwagyo investors fuel building boom

Kang Mi Jin  |  2015-10-02 12:01
Read in Korean  

Construction of new apartment buildings is being accelerated in North Pyongan Provinces Sinuiju and Hyesan, Yanggang Province, with low rise apartments fetching the highest price at nearly US $10,000. Unlike Sinuiju, which has high rise buildings, Hyesan is mainly constructing low rise apartments. Apartments at or above the fifth floor are being called Royal Suites, and selling for big money, according to inside sources. 

In a telephone conversation with the Daily NK on October 1st, a source in Yanggang Province explained, Hyesan is currently undergoing a makeover. New apartments are going up all over the city. Residents are preferring the high rise apartments despite their relative scarcity, or perhaps because of it. Right now a fifth floor, two room apartment (approximately 80-120 square feet) sells for 60,000-70,000 Yuan (US $10,000- $11,000) is the most expensive. 

Another source in Yanggang Province confirmed this development. 

In Hyesan, the lower floors go for much cheaper; apartments in floors 1-3 usually sell for about 20,000 - 25,000 Yuan (US $3,000 - $4,000). 

The prices tend to be tied to the floor level like this, she explained. 

By the time the Korean Workers Party Foundation Day holiday arrives on October 10th, Hyesan will look like a totally new city. But construction is not limited to Hyesan; we also see apartment buildings shooting up in Hyesans suburbs and riverside regions, in Tabsongdong near Hyesan Stadium, and in Hyemyeongdong, an area filled with statues of Kim Il Sung and Kim Jong Il. 

Added the source, Much of the construction is due to investment from the Hwagyo [community of overseas Chinese] residing here. They buy one story houses at a very cheap price and then build up a multi-storied apartment and sell it off.  They are making a good amount of money through the sales, but the residents are happy to be enjoying the more modern living spaces, so its a win-win. 

When asked why the residents prefer apartments on higher floors, the source said that people are less worried about theft of furniture and large appliances when they live higher up.  In years past, she asserted, most people preferred to be ground level so that they could have access to the yard for planting vegetables. But now, lots of folks are worried about flood damage during the rainy season or the possibility of theft. 

She continued to describe the state of one story homes, saying, houses near Nongnim University or the Hyesan train station sell for approximately 25,000 Yuan (US $4,000). Homes in Yeonbong Il Dong sell for rather cheap at 5,000 Yuan (~$800). However, there are some pricier places in Yeonbong located near the jangmadang (marketplace) that sell for about 20,000 Yuan (~US $3,000).    

Last week the currency conversion rate in Hyesan was 1 Yuan/1320 KPW. That means that a 60,000 Yuan apartment sells for about 80 million KPW (~US $70,000) and a cheaper home selling for 5,000 Yuan sells for about 6.5 million KPW (~ US $7,000).

*Translated by Jonathan Corrado

 
Advertisements, links with an http address and inappropriate language will be deleted.

2017.01.26
Won Pyongyang Sinuiju Hyesan
Exchange Rate 8,000 8,000 8,050
Rice Price 4,000 3,970 4,190