On the DPRK’s thriving black market in real estate

According to Radio Free Asia:

Private ownership of homes is illegal in North Korea, but residents of Pyongyang who make frequent trips to China and residents of cities on the border between the two countries told RFA it is no longer strange to hear about “sales” of government properties between individuals.

According to a virtual housing market for North Korean civilians, the country’s most expensive homes are located in Sinuiju, with Hyesan city in northern Yanggang province next in cost and Pyongyang in third.

A single family home or large apartment in what is deemed a good location in Sinuiju can fetch around U.S. $30,000, while those in the suburbs of Pyongyang and other border cities are priced less.

While houses are being built everyday in Pyongyang to supply a growing demand, it is difficult to find new homes in other cities, leading to a rise in the cost of real estate, the sources said.

A resident of Hyesan told RFA that homes in cities like his, near the border with China, command the highest prices on the black market because they provide access to Chinese money and infrastructure.

“I can’t say all houses in Hyesan are expensive, but those which are good for the smuggling trade and receive a clear Chinese cell phone signal are really high priced,” the source said, speaking on condition of anonymity.

“Several houses by the riverside are even priced similarly to Chinese houses on the opposite side of the border in [Jilin province’s] Changbai city,” he said.

Sources told RFA that the North Korean government has canceled licenses several times in recent years, issuing statements which describe the practice of housing transactions as an “offence against the system of the North Korea.”

But attempts to stamp out the trend have repeatedly failed as those involved in the sales include untouchable high-ranking officials and because the practice is too far reaching.

Read the full story here:
Illegal Trade in North Korean Homes Flourishes
Radio Free Asia
2013-5-7

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