The nation's falling birthrate is good news for future university and junior college applicants but could spell disaster for some unpopular institutions, according to a report compiled by the Central Education Council.

About 699,000 people are expected to take such entrance exams in 2007, about equal to the number of places open, according to the council, which advises the minister of education, culture, sports, science and technology.

All applicants will be able to enter university in three years' time, provided they do not pick and choose, the report says.