North Korean authorities have issued an internal directive targeting widespread illegal real estate transactions after discovering rampant home sales across the country.
A source in North Hamgyong province told Daily NK recently that the provincial people’s committee “issued an internal order regarding housing transaction stability to construction headquarters and housing management departments in cities and counties earlier this month after detecting illegal behavior in housing sales.”
“The directive came after widespread cases of people selling modern housing that the state built for citizens early this year,” the source explained. “They’re selling these homes for very little money and moving back to older houses or rundown neighborhoods.”
The crackdown began after a Korean War veteran’s family in Chongjin sent a complaint letter to ruling party officials last month, reporting that such sales were common in their area. Pyongyang subsequently ordered the provincial people’s committee to take strong action against illegal housing transactions.
“How can people sell homes the state built for them less than a year after moving in?” central government officials complained. “Housing is becoming a market commodity rather than a socialist benefit, so the province must strictly control this situation.”
State targets wealthy speculators in housing market cleanup
Provincial authorities discovered that home buyers were openly purchasing houses from financially struggling owners at low prices, then reselling them at higher prices after minor renovations. Some donju (North Korea’s wealthy entrepreneurs) have acquired multiple properties registered under family members’ or relatives’ names, according to the source.
“The state has begun cracking down hard in response to these findings,” the source said.
The provincial people’s committee plans an intensive campaign against illegal housing sales through the end of August. Chongjin, which has many wealthy residents, will face especially strict enforcement, with the city’s Sunam, Sinam and Pohang districts under particular scrutiny.
Authorities will seize illegally sold houses, evict occupants and restrict their freedom of movement. Officials are also considering implementing housing price ceilings.
Many people are frustrated by the new restrictions.
“People say they’ve been buying and selling homes since the 1990s and don’t understand why the state suddenly needs to restrict it,” the source said. “They argue that poor people do this to raise money for basic survival, and that they need more than just the home the state provided to get by.”
