The government's plan to revive the 'sales-type silver town' system last year has effectively fallen through. This is because the Ministry of Health and Welfare has not made any amendments to the Older Persons Welfare Act over the past year. The industry, which had been reviewing the sales-type silver town project, is in disbelief.
According to the Ministry of Health and Welfare and the construction industry on the 19th, it has been determined that the ministry did not proceed with the amendment of the Older Persons Welfare Act that was supposed to start in the second half of last year. Article 33 of the Older Persons Welfare Act states, 'Those who install or intend to install elderly welfare dwellings must rent them to qualified residents.' Accordingly, the Ministry was supposed to propose an amendment to the Older Persons Welfare Act to enable the 'sales-type silver town' as planned.
A Ministry of Health and Welfare official said, 'Given the past issues such as unqualified residents moving in and illegal sales regarding sales-type silver towns, we are reviewing alternative measures,' adding, 'We do not know when the proposed bill will be introduced.'
In July last year, the government held a meeting of economic ministers and presented a joint 'senior residence activation plan' with related ministries. The government said it would introduce a new sales-type silver town that includes a certain proportion of rented types in population decline areas (89 locations). It also added that it would push for amendments to the Older Persons Welfare Act in the second half of the same year.
The industry, which was preparing the sales-type silver town project in anticipation of the growing elderly population, is in a state of confusion. The industry had been urging the government to expand the introduction of sales-type silver towns beyond the population decline areas (89 locations) across the country. A survey conducted by Heerim Architects & Planners and real estate consulting firm Altukorea in March to April last year among 307 people aged 55 to 79 living in the metropolitan area found that 68.1% of respondents wanted to live in senior dwellings in Seoul and the metropolitan area.
A sales-type silver town operator said, 'We have suggested to the relevant department to at least loosen the business area to include the metropolitan area and local metropolitan cities,' adding, 'I never imagined that the proposed amendment hasn't even been introduced yet.'
There is continuous criticism that the number of senior residences (elderly welfare dwellings + older adult welfare dwellings) is excessively insufficient compared to the elderly population. As of 2023, the total number of senior residences in the country stands at 12,962 units, which is only 0.13% of the population aged 65 and older by the end of the same year.
Yang Wan-jin, a researcher at the Real Estate Development Institute, said, 'We have been requesting that the introduction of sales-type silver towns be expanded from the population decline areas to the entire nation.' He added, 'If the introduction of the system has fallen through, we are in a situation where we have to start asking for sales-type silver towns again from square one.'
Meanwhile, the sales-type silver towns were abolished in 2015 after controversies arose over ownership by unqualified individuals such as children rather than parents, false and exaggerated advertising, and management issues after sales. Last year, the government hinted at reintroducing it, raising expectations for its revival after nine years.