The North Hamgyong Province People’s CommitteeNorth Korean people's committees are akin to local governmen... More recently increased the advance payments that prospective homeowners will have to pay to fund the construction of their apartment buildings, Daily NK has learned.
Speaking on condition of anonymity for security reasons, a source in North Hamgyong Province told Daily NK on Thursday that the city management office and the planning office of the provincial people’s committeeNorth Korean people's committees are akin to local governmen... More “raised the advance payment they receive at the start of apartment construction from USD 4,000 to USD 7,000 as of March, citing the fact that prices and land values have risen significantly in recent years.”
When North Korean apartments are built, people pay an upfront fee – ostensibly for investment – to get a piece of the pie. As recently as last month, people were paying USD 4,000, but the amount suddenly jumped 75% in March.
The city management bureau and the planning bureau of the provincial people’s committeeNorth Korean people's committees are akin to local governmen... More held discussions until recently about raising the advance payment, which they argued was too low and out of line with inflationary trends, the source said.
“The prepayment system came into being when the state and the donjuLiterally "masters of money," donju refers to people who hav... More began to cooperate in housing construction, and now it’s taken for granted in housing construction,” he said. “So the province is starting to get directly involved in raising the advance payment in line with economic prices.”
Recently, private contractors have occasionally swindled people out of their money by getting involved in housing investments and prepayment processing.
“Acting in an organized manner, private contractors sometimes take the advance payments and put them in different places here and there, robbing Peter to pay Paul, or disappearing altogether,” the source said. “As such incidents continue to occur, people who invest in housing are feeling nervous.”
Newer apartments better able to sidestep water and electricity shortages
In North Hamgyong Province, demand for low-rise apartments has been high recently, a departure from the past. This is due to the severe inconveniences that residents of high-rise apartments suffer due to chronic power shortages and poor running water.
“Unlike in the past, people in North Hamgyong Province are turning to building modern low-rise apartments that have fewer problems with water and electricity,” the source said.
Most of the newly built low-rise apartments benefit from their ability to solve their own electricity and water supply problems. They have solar panels on their roofs and rooftop water tanks filled with water brought up from underground by a generator.
However, since heating is still a problem, the apartments are designed with heating stones where people can burn briquettes and other kindling to keep their homes warm.
Such low-rise apartments sell for an average of about USD 12,000, according to the source.
“The low-rise apartments are popular with officials and donjuLiterally "masters of money," donju refers to people who hav... More in mountainous counties such as Orang County and Kyongwon County.”
Translated by David Black. Edited by Robert Lauler.
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