Does the Country Demolish Prefabricated Panel Houses?

The country does not require a comprehensive demolition of prefabricated panel houses. Instead, it adopts a strategy of 'governance and renovation' and 'steady progress,' only implementing demolition for houses with serious safety hazards or those that meet municipal planning requirements.

1. Core Policy: Tailored Measures to Avoid 'Extensive Demolition and Construction'

According to the '15th Five-Year Plan for Urban Renewal' issued by the State Council in May 2026, it explicitly requires the renovation of over 500,000 C- and D-grade dangerous houses and prefabricated panel houses, emphasizing 'steady progress in governance and renovation' rather than comprehensive demolition. Meanwhile, a notice jointly issued by the Ministry of Natural Resources and the Ministry of Housing and Urban-Rural Development in January 2026 sets demolition limits: the demolished floor area within an urban renewal unit shall not exceed 20% of the current total floor area, and the demolition-to-construction ratio shall not exceed 2. The policy explicitly requires avoiding 'extensive demolition and construction.' Among the old residential communities listed in the national renovation plan for 2026, only about 17% require demolition and reconstruction.

2. Basis for House Demolition: Professional Appraisal and Grade Classification

Whether a house should be demolished depends on the grade assessed by professional institutions according to the 'Standard for Appraisal of Dangerous Houses' (JGJ 125-2016):

• D-grade Dangerous Houses (Overall Danger): The structure has been severely damaged and cannot meet safety requirements for use, requiring 'demolition wherever possible.'
• C-grade Dangerous Houses (Partial Danger): Some load-bearing structures have insufficient bearing capacity and can be handled through repair and reinforcement, reconstruction, or original demolition and reconstruction.
• A- and B-grade Houses: The structure is basically intact or has minor local damage, only requiring repair and maintenance.

3. Renovation Direction: Improving Living Conditions While Considering Safety and Functionality

For prefabricated panel houses that are not D-grade dangerous houses, policies encourage improving living conditions through renovation. For example, structural reinforcement, elevator installation, and pipeline layout optimization for C-grade dangerous houses; facade repair and energy-saving renovation for A- and B-grade houses. During the renovation process, the principle of 'retention, renovation, and demolition' must be strictly followed, prioritizing the preservation of historical features and community functions to avoid resource waste caused by excessive demolition.

4. Special Circumstances: Municipal Planning and Public Interests

If prefabricated panel houses are located in key urban development areas (such as transportation hubs or public facility sites) or are required by municipal planning (such as road widening or green space construction), they may be included in the demolition scope. However, such demolitions must follow legal procedures, including public announcements, hearings, and compensation and resettlement, to ensure the legitimate rights and interests of residents.