Housing prices near a market in the North Korean city of Chongjin have climbed as much as three times their pre-pandemic levels in 2026. Homes closest to the market are commanding the steepest premiums, a source in North Hamgyong province told Daily NK.
Prices around Sunam Market, one of Chongjin’s largest, have risen sharply since before the COVID-19 pandemic. A home’s size and condition now matter less than how close it sits to the market, and locals sometimes call the added value a jangmadang premium, using a Korean term for informal markets. Such markets emerged after North Korea’s centrally planned economy unraveled in the 1990s.
A rundown, one-room house resembling a storage shed sold for 10,000 to 15,000 Chinese yuan before the pandemic, or about $1,500 to $2,200. The same type of house now trades for roughly 30,000 yuan, two to three times its former price.
A one-room house with basic amenities has followed a similar path. It rose from 20,000 to 25,000 yuan before the pandemic to about 50,000 yuan today. A standard two-room house has climbed even further, from 40,000 to 50,000 yuan to roughly 100,000 yuan over the same period.
Two-room houses close enough to Sunam Market to double as a shop or storage space have posted the sharpest gains. Such homes sold for 50,000 to 60,000 yuan before the pandemic. They now fetch as much as 150,000 yuan, nearly triple their earlier value.
“Around Sunam Market, demand from people looking to secure business space outweighs demand from those simply looking for a place to live,” the source said. “Even for two-room houses of the same size, the price is far higher if the house is close to the market.”
Market access, not size, drives housing prices
Houses near Sunam Market carry a heavy premium because they can double as warehouses or private shops, not just as homes, the source explained. Closeness to the market and usefulness for business have become bigger price drivers than size or condition, and the shift underscores how deeply market forces have reshaped housing in North Korea’s provincial cities.
Brokers have increasingly taken over the paperwork involved in these sales, which includes transferring the name on a residence-use permit, the document that authorizes a household to occupy state-owned housing. In the past, buyers paid bribes directly to the housing department of the local people’s committee to handle the process themselves. Brokers now manage both the sale and the required government filings, the source said.
The shift coincides with a local development push that has driven construction of 12-story or taller apartments in provincial cities. Developers once delivered new housing with only the frame and exterior plaster finished, leaving buyers to complete interior work themselves. Increasingly, they hand over units with finished interiors and furniture already installed.
Prices in the new high-rises vary sharply by floor, the source said. In one high-rise in Hyesan, Ryanggang province, units on the first through sixth floors sell for about 30,000 yuan. Those on the seventh through ninth floors go for roughly 25,000 yuan. Units above the 10th floor sell for even less, the source said.
Higher floors tend to be cheaper for a simple reason. Chronic electricity shortages often leave elevators out of service, forcing residents to climb the stairs. That adds to the daily strain of life in the buildings.
The pattern reflects how thoroughly market forces have taken hold across North Korea’s provincial cities. A house’s proximity to markets and its potential for commercial use now shape its price more than size or condition. The practical convenience of daily life factors in as well, the source said.
Reporting from inside North Korea
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August 21, 2026 at 07:55PM
by DailyNK(North Korean Media)