Moving houses is apparently quite popular, so North Koreans have to “work” with state and cooperative owners. If land, houses and real estate are registerd as state owned property, however, it is illeal for people to trade in them. Apparently officials have no problem making transactions under the right conditions, but if the wrong person finds out, you could lose all your money.
Current prices:
City dewlings-single story, near markets (Jangmadang), W2 million (Appx: $666.67)
Cuntry home-Over 10,000W (Appx $3.50)
Central Pyongyang and Sinuiju: W20-30 million.
North Korean Land Ownersip Norms:
There are three kinds of owners in North Korea:
1. the state,
2. cooperative unions (such as cooperative farms)
3. individuals (titiles are registered to individuals for historical reasons)
1. State-owned houses are constructed by the City Construction Office. It used to follow a construction plan, but from the early 90’s construction stopped. After units are completed, they are transferred to the City Management Department of People’s Committee. The City Management Department then transfers some units certain organizations (at its own discretion I guess), and distributes others to ordinary people. The City Management Department oversees the ‘Housing Inspection Board’ which controls the dealings, rent, and lease of houses.
Residents can move into their houses after getting a ‘residents certificate’ from the City Management Department. Before the “Economy Management Action” launched in June 1, 2002 (price reforms), the housing purchase prices that the ‘residents certificate’ guaranteed, was a relatively low W180 to W1,000 ($0.06 – 0.33). After the Action, they increased up to W1,000 – W10,000 ($0.33 – 3.33). As the ‘residents certificate’ guarantees, the houses are registered in owners’ names, but because it does not have any ownership concept in it, the owners can not sell the houses.
But tennants still have to pay the equivalent of rent in the form of ‘Management expenses’. ‘Management expenses’ are roughly W100 including water rates, broadcasting charges, and electricity expenses.
2. Cooperative unions do not allow people other than their own staff to live in their governing houses. No sales and rent are permitted. If a staff member stops working there, he or she leaves the property.
Staff working for the Party, Administrative Ministry, and Law Authority organizations live in specific dwellings in each district. If they are laid off, then they have to leave the houses. In case of personnel changes, they can continue to live in the former living houses. The houses in which high-ranking officials live are rarely sold because of others’ opinions.
3. Individually owned houses in North Korea are usually located in the country, not in cities. Shortly after the regime was established, most of the individually-owned houses were confiscated under land reform. Some were allowed to reatin ownership in a small sense if they were not wealthy or if the land had been in the family for generations. These owners are allowed to sell their homes.
If these homes are later included on a list of ‘forced removal’ (the equivalent of eminent domain I imagine), the owners can build new houses at other sites given to them by the Ministry of Land Administration. Although the Ministry of Land Administration gives as much land as was taken, the new land can not be sold.
Black Market Trading:
Since there has not been much housing construction in some time, spply and demand are not equilibrating. So residents are forced to come up with coping mechanisms.
One method appears to be bartering. Two residents that wish to swap houses go to the City Management Department. In typical communist fashion, greasing the wheels can get an official in charge to change the names on the residence certificates. All the official has to do is sign the paper to make it official. The two trades can make cash paments to each other if necessary at another time. (this suggests that there might be reputable escrow agents available). If a conflict emerges and becomes public, the CMD can confiscate both properties.
