Forty-Year Prefabricated Panel House Policy

The forty-year prefabricated panel house policy mainly involves two aspects: housing expropriation and compensation, and real estate market regulation, as detailed below:

Housing Expropriation and Compensation Policy

• Expropriation Conditions: According to the 'Regulations on the Expropriation and Compensation of Houses on State-Owned Land', municipal and county-level governments can make expropriation decisions for forty-year prefabricated panel houses to safeguard public interests, such as national defense, diplomacy, and infrastructure construction, provided that they comply with national economic and social development plans, overall land use plans, etc. If the area where the houses are located is included in urban renewal or major project construction plans, they will also be demolished according to the planning requirements.
• Demolition Decision Considerations: Demolition decisions take into account both structural safety hazards and urban planning needs. If a building is professionally identified as having serious structural safety issues and the repair costs are excessively high, the local government will organize demolition and reconstruction in accordance with relevant regulations. When the area where the prefabricated panel buildings are located is included in urban renewal or major project construction plans, they will be demolished according to the planning requirements. For prefabricated panel buildings with minor safety hazards and still usable value, the government prefers to enhance them through old residential area renovations, such as exterior wall insulation, pipeline renovations, and elevator installations.
• Demolition Requirements and Compensation: Before demolition, detailed structural identification and safety assessments must be conducted to ensure that the demolition work does not pose safety hazards to surrounding buildings and residents. At the same time, the demolition work must comply with relevant laws, regulations, and planning requirements. The government must provide reasonable compensation and resettlement measures for prefabricated panel buildings that need to be demolished, which may include monetary compensation, house replacement, relocation expenses, etc., to alleviate the economic burden and living inconveniences of residents.

Real Estate Market Regulation Policy

• Sales Restrictions: The 'Notice on Standardizing the Order of the Real Estate Market and Further Strengthening Real Estate Market Regulation' issued by the Ministry of Housing and Urban-Rural Development clearly stipulates that houses with an age of 40 years or more (including 40 years) cannot be sold, aiming to strengthen real estate market regulation, improve housing quality, and safeguard people's livelihood safety.
• Maintenance and Management Responsibilities: For existing residential buildings with an age of over 40 years, the notice stipulates that property service enterprises should be urged to strengthen maintenance and management. Property service enterprises need to undertake more maintenance and management responsibilities to ensure the safety and living quality of the houses.

The Ministry of Housing and Urban-Rural Development does not have a unified new regulation on the demolition of old prefabricated panel houses over 40 years old. Specific policies are formulated by local governments according to actual conditions. Information on prefabricated panel houses with an age of over forty years is usually already known to the local housing and urban-rural development departments, and their supervision and disposal need to be combined with the safety conditions of the houses and urban planning needs.