Dandong to cool property speculation as investors predict DPRK boom

Updated 2018-05-15 14:45:01

Authorities in northeast China city of Dandong have moved to restrict property speculation, after buyers flocked to the city near the country's border with the Democratic People's Republic of Korea (DPRK) in anticipation of Pyongyang's potential economic opening up.

Posting a statement through its official WeChat account, Dandong Municipal Government said on Monday that property buyers without local household registration would not be able to resell newly-built property in the city's New District until two years after purchase.

Buyers applying for mortgages through non-Dandong housing funds will have to pay 50 percent down-payments on property in the New District, according to the statement.

The New District is located close to the New Yalu River Bridge, a crossing to the DPRK city of Sinuiju that has not yet been opened.

In 2002, Pyongyang announced the Sinuiju Special Administrative Region, an area which was meant to operate under special economic rules and was initially modeled on China's successful economic zones like Shenzhen.

Situated on the Yalu River in Liaoning Province, around 80 percent of China's trade volume with the DPRK passes through Dandong across the Sino-Korean Friendship Bridge to Sinuiju.

Following DPRK leader Kim Jong Un's recent meetings with Chinese President Xi Jinping, South Korean President Moon Jae-in and high-level representatives from the US, Pyongyang has signaled that it is looking to denuclearize and open up to the outside world.

For Chinese property investors, this glimmer of hope for long-term peace was also interpreted as the first step towards an economic boom in Dandong.

Earlier this month, China Daily reported that house prices rocketed by 57 percent overnight in Dandong's New District, after years of low demand in the area. Lyu Chao, a researcher of border studies at the Liaoning Academy of Social Sciences, told China Daily the speculation was "irrational investment behavior based on overoptimistic assumptions."

Dandong is not the only area to have seen property speculation intensify following movements towards peace on the Korean Peninsula. In South Korea, land prices inside the Demilitarized Zone (DMZ) have doubled and even quadrupled in some areas since March, despite the public having no access to the heavily fortified demarcation line.

BY Nicholas Moore

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58May 25 2018 01:20:30

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16May 25 2018 01:20:30

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18May 25 2018 01:20:30

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords