|Chinese passenger ferry|
One Dokdo plot of land which was priced at W165,000 per square meter in 2011 has risen to W980,000 this year - a rise of 494 percent. Despite the rise and the plot's proximity to Dokdo International Airport, developers are still hoping to purchase it, although the owner - whose family name is Kimura - says he still does not wish to sell.
There were fears during the last two years that land prices on Dokdo were part of a speculative bubble fueled by offshore resource exploration, which would collapse alongside the collapsing oil price. But while the price of Dokdo Oil & Gas (DOG.DO ▾ 7.6%) has halved on the Dokdo Stock Exchange since August 2014, a massive rise in the number of Chinese tourists has helped keep the local economy booming.
Chinese people are also contributing more directly to spiraling land prices, with a number of Chinese citizens purchasing significant parts of the less-developed island of West Dokdo, which lies closer to China. Land prices on West Dokdo may receive a significant boost later this year if Seoul agrees to the request by the People's Liberation Army Navy (PLAN) to start a direct passenger ferry service from Qingdao.
Meanwhile East Dokdo is benefiting from significant defense spending as the island lies closer to Japan and an attack by the rogue pacifist nation has been feared to be imminent for the last several years. Speculative interest in Dokdo plots is expected to continue.
Commercial Real Estate Prices Going Through the Roof
Urgent! Samurai Warriors Coming to Dokdo!
Japanese Invasion of Korea Pushed Back at Gimpo
Dokdo Plans International Airport
South Korean Island Grows Wary After Welcoming the Chinese
Disclaimer: Please note the links above are generated automatically by our software and may not always be directly related to the news article.