Apartment prices in North Korea’s border region are sharply declining as more and more people are choosing to sell their homes due to increasingly dire economic circumstances.
A source in Yanggang Province told Daily NK on Monday that apartment prices in Hyesan have recently plummeted as an increasing number of people are selling their expensive apartments and moving to more affordable housing to try and overcome financial difficulties.
According to the source, the average price of a 25-pyong apartment in Hyesan is between RMB 100,000 and 150,000 (about USD 15,700 to 23,562). However, since there are more people selling than there are buying, actual transaction prices are much lower.
In fact, one Hyesan resident in his 50s surnamed Kim recently ended up selling his apartment that he had lived in for more than 20 years for RMB 60,000, which is half its market value of RMB 120,000. The source explained that Kim had no other option than to sell his expensive apartment and move to a one-room harmonica house (a type of row house found in North Korea) for RMB 20,000 to make ends meet.
Other people have made similar decisions to sell their homes. A Hyesan resident in his 60s surnamed Choi sold his apartment, with a market value of RMB 130,000, for only RMB 80,000 before moving to a rural area. Similar to Kim, Choi’s reasons for selling his apartment at such a low price was due to financial difficulties.
This situation provides further evidence that North Koreans are suffering from food issues and other economic woes. Above all, it shows that even middle-class people who own expensive apartments are facing financial difficulties.
“Up until a few years ago, Hyesan was known as a rich and well-off city and people really did live well,” the source explained. “However, with the spread of COVID-19, the border was completely shut down and restrictions were placed on the operating hours of marketplaces, making it particularly difficult for people living in the border areas.
“People living in areas designated for the construction of new apartments may be able to make a large amount of money if they endure for a few months, but they are selling their homes now at inexpensive prices. They have to be facing tough times to be doing that,” the source said.
“Moreover, as we enter the food-scarce spring season it has gotten harder to make money, so more and more people are trying to make ends meet by selling their houses to acquire cash,” he added.
Translated by Gabriela Bernal
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