vlad.tribnet.com / Issue #555 / Business / Reading article...

The Russky Island which lies comfortably south off the Pacific port of Vladivostok, deserted and well-forgotten by both its military owners and local authorities, is now facing a surge of interest from real estate companies fighting for room on the island picked by Russia’s President Vladimir Putin as the venue for the APEC summit in 2012.

According to local real estate companies, the island’s territory is currently one of the most promising fields for activities, Zolotoi Rog business weekly recently reported.

The prices for real estate on Russky Island started to increase last year when Primorye’s administration announced plans to construct a bridge that will stretch over Zolotoi Rog Bay and connect the island with Vladivostok. However, the true boom for apartments and land started after Putin called the Russky Island an ideal place for the APEC-2012 summit and promised to allot 100 billion rubles ($3.8 billion) from the government to turn the place into a tourist heaven.

According to realtors, a two-room apartment previously costing $4,000 can be presently sold for $40,000 immediately.

Similar tendencies are observed in apartment prices in the residential district of Churkin where the bridge is supposed to stretch to in three years, The Vladivostok said.

According to Sergey Kosikov, director of the Far Eastern marketing center, some owners of apartments in the Churkin district are already offering their flats for sale at prices 10 to 15 percent higher than average.

Lying on the other part of Zolotoi Rog Bay, the Churkin district is traditionally viewed by locals as less comfortable and desirable for residence due to its transportation problems and remoteness from central Vladivostok. The prices for flats in the Churkin district are usually lower than in other Vladivostok districts.

However, a major splash in prices for Churkin flats may take place only after the bridge will have been constructed, Kosikov said. The bridge will push development of the district’s infrastructure and will make business activities there more attractive, justifying the hike in prices.