SEOUL (UCAN): Oh Se-hoon, the mayor of Seoul, South Korea, launched a housing scheme for newly married couples to address the demographic crisis fuelled by an alarming fall in birth rates, says a report.
During a meeting at Seoul’s City Hall on May 29, Oh said that his administration plans to provide 4,396 public housing units to newlyweds for three years starting this year, Hankyoreh reported on May 29.
Applications will open in July. A total of 2,396 public houses will be provided through 2026.
The housing scheme aims to make subsidised housing accessible to newlyweds under the Plan to Expand Housing for Newlyweds in Response to Low Birthrates initiative.
“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,” he added.
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 Se-hoon
South Korea’s birth rate faces a demographic challenge fuelled by a constantly falling birth rate which fell from 0.78 in 2022 to 0.72 in 2023, according to official data. 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 home.
The new scheme benefits will vary based on the number of children, the mayor’s press statement explained.
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 per cent discount against the market price if they have two children.
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 Se-hoon
Couples who have three children are eligible to buy the apartment at a rate that is 20 per cent below the market price.
Oh’s administration introduced the original Long-term Rental Housing, also known as SHift, in 2007, which found immense success.
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 emphasised.
In addition, the “Newlywed Safety Housing,” another set of rental homes will provide 2,000 units by 2026, Oh said.
The project sites will be built within 350 metres of subway stations or 50 metres of a main road so that there is no inconvenience in commuting to work or using living amenities.
