Hong Kong has reduced the waiting time for public housing applicants with newborn babies in an effort to support birth rates in the city.

Families with children born on or after Oct 25 this year qualify to apply for Category A tenancy after two years instead of the previous three-year period, according to a statement issued by the Housing Bureau. The change, which came into effect Friday (Dec 2), aims “to promote fertility and create a childbearing environment,” the agency said. 

The new measures “would help families with newborns in need break away from the difficulties swiftly and have a better quality of life,” the bureau said in the statement. The three-year eligibility requirement remains unchanged for other applicants.  

Hong Kong’s birth rates dropped to a record last year, putting pressure on the city’s officials to offer better incentives to tackle the issue. Chief Executive John Lee said in a policy address in October that the government would provide a one-off cash bonus of HK$20,000 (S$3,414.3) to a parent who is a permanent resident for each baby born. BLOOMBERG