Top Stories 24/05/29 Seoul launches newlyweds' housing to boost birth rate

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Seoul launches newlyweds' housing to boost birth rate 

Couples married for seven years and those planning to marry can apply for housing at a discounted price

People walk past street stalls at Namdaemun Market in Seoul, South Korea, on June 20, 2023. (Photo: AFP)

By UCA News reporter

Published: May 31, 2024 11:18 AM GMT

Updated: May 31, 2024 11:58 AM GMT

The mayor of South Korean capital Seoul has launched a housing scheme for newly married couples to address the demographic crisis fueled by an alarming fall in birth rates, says a report.

Mayor Oh Se-hoon said during a meeting at Seoul City Hall on May 29 that his administration plans to provide 4,396 public housing units to newlyweds for three years starting this year, Hankyoreh reported on May 29.

The housing scheme under the “Plan to Expand Housing for Newlyweds in Response to Low Birthrates,” aims to make subsidized housing accessible to newlyweds.

“Until now, it was easy to enter public housing only if you had a large number of children, but now you can enter public housing even if you don't have children,” Oh said in a press statement.

“The low birthrate in Korean society is a pan-social issue that is directly related to the country's existence, and Seoul needs an even more urgent response,” Oh added.

The Seoul administration’s move comes at a time when South Korea’s birth rate faces a demographic challenge fueled by the constantly falling birth rate.

Official data shows birth rate fell from 0.78 in 2022 to 0.72 in 2023. The birth rate or fertility rate is defined as the number of children a woman is expected to have in her childbearing age. Population scientists consider 2.1 as the replacement rate.

The new housing scheme is available to newlyweds who are members of a household without their own house, and couples who have been married for seven years.

Those who are planning to marry within six months of the date of the plan’s announcement are also eligible to apply for a house.

The new scheme benefits will vary based on the number of children, the mayor’s press statement read.

For couples with only one child, the maximum residency period will be extended from 10 to 20 years. The couples are eligible to purchase the home at a 10 percent discount against the market price if they have two children.

Couples who have three children are eligible to buy the apartment at a rate that is 20 percent below the market price.

Oh’s administration introduced the original “Long-term Rental Housing,” also known as “SHift,” in 2007. It found immense success among the people.

Oh claimed that the number of children born after moving in under the scheme was higher than that of other types of rental housing, proving that a stable housing supply helps to increase the birth rate.

“Just as long-term rental housing has helped to increase the birthrate, we are also proposing a plan to expand housing for newlyweds with the determination to do everything we can,” Oh emphasized.

In addition to the existing plans, the “Newlywed Safety Housing,” will provide 2,000 units by 2026, Oh said.

The project sites will be built within 350 meters of the transport station area or 50 meters of the main road so that there is no inconvenience in commuting to work or using living amenities.

Oh said that the apartments will be fitted with built-in appliances such as refrigerators, washing machines, induction ovens, and air conditioners.

“Seoul will do everything in its power to establish a system where society raises children together once they are born, and will prioritize the necessary resources,” Oh emphasized.