Government 'Considers' Newlywed Special Housing for Non-Capital Areas Regardless of Size

The government is considering easing the special supply area criteria for newlyweds when purchasing apartments outside the metropolitan area. This aims to relax the special supply criteria, which are currently limited to 국민평형 (exclusive area of 84㎡) or less only in non-metropolitan areas, to increase the influx of newlyweds who want to secure larger apartments outside the metropolitan area. Furthermore, the government expects that improving the quality of housing for newlyweds could have a positive impact on the birth rate.

On the 4th, a Ministry of Economy and Finance official said, "The government is exploring all available means to address the low birth rate issue," adding, "We are reviewing the easing of special supply area criteria for newlyweds outside the metropolitan area, believing it could help alleviate the concentration in the metropolitan area and contribute somewhat to solving the low birth rate problem."

The Ministry of Economy and Finance is considering this measure because housing support is identified as the most necessary low birth rate policy for young people. Participants at the '2023 Youth Discussion on Low Birth Rate Policy Proposals' held by the Presidential Committee on Ageing Society and Population Policy and the Ministry of Health and Welfare on the 22nd of last month ranked housing support as the top priority. A young person living in a provincial area remarked, "I believe that easing the concentration in the metropolitan area, where people have no choice but to live in cramped spaces, is key to solving the low birth rate issue," and pointed out, "A strategy is needed to address the metropolitan area bias in low birth rate policies and the blind spots in provincial areas."

Earlier this January, the government decided to abolish the price cap (900 million KRW) on apartments specially allocated to newlyweds and youth through the 'Real Estate Regulation Relaxation Plan.' This was intended to provide more opportunities for newlyweds to own homes, and now the government is considering easing the area criteria as well.

Special supply is a method of prioritizing housing allocation to socially favored groups such as newlyweds, multi-child families, and those supporting elderly parents. According to the current Housing Supply Regulations, newlyweds within seven years of marriage (based on the registration date of the marriage certificate) can receive special supply for private housing with an exclusive area of 85㎡ or less. If the area criteria are eased outside the metropolitan area, newlyweds will be able to receive special supply housing for apartments exceeding 85㎡.

An official from the housing industry said, "It is positive that the government recognizes that improving housing conditions is the key to solving the low birth rate problem and is developing related policies," but added, "However, to see the effect of easing the special supply area criteria for newlyweds, the requirements for newlywed policy funds must also be relaxed." The Housing and Urban Fund provides loans of up to 400 million KRW at an interest rate of 1.85% to 2.70% annually for newlyweds. However, loans are only available for purchasing homes with an exclusive area of 85㎡ or less, or 100㎡ or less in eup or myeon areas outside metropolitan urban areas.

A Ministry of Economy and Finance official said, "We will review the effectiveness of easing the special supply area criteria for newlyweds outside the metropolitan area and the accompanying measures," adding, "After specifying the plan further, we will proceed with full consultations with related ministries."

[Image source=Yonhap News]

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