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Demolition of Prefabricated Panel Houses

Admin September 18, 2026

The demolition of prefabricated panel houses should be comprehensively judged based on the house safety appraisal grade, age, seismic capacity, and urban planning needs. The specific handling methods and policy bases are as follows:

I. Three Types of Houses Prioritized for Demolition

  1. Grade D Dangerous Houses: Prefabricated panel houses appraised as Grade D dangerous houses (with structural safety reaching a dangerous state) by professional institutions must be demolished. Specific criteria include foundation settlement exceeding 5 centimeters, crack widths in load-bearing walls greater than 1 millimeter, and seismic grades less than 70% of current standards.
  2. Old Houses Built Before the 1980s: Prefabricated panel houses with an age exceeding 40 years are included in the priority demolition range due to severe structural aging and significant safety hazards.
  3. Houses Affecting Urban Planning: Prefabricated panel houses located within the planning scope of major infrastructure projects such as subways and elevated highways may be adjusted for demolition to advance overall urban planning.

II. Other Handling Methods

  1. Repair and Reinforcement: Prefabricated panel houses appraised as Grade C dangerous houses (partially dangerous but still repairable) can have their safety enhanced through measures such as reinforcing walls, beams, columns, and floor slabs. The central budget supports such projects, with subsidies not exceeding 70% of the total approved project investment.
  2. Old Residential Area Renovation: Prefabricated panel houses appraised as Grade A (structurally safe) or Grade B (individual components dangerous but not affecting the main structure) can have their living conditions improved through measures such as roof repairs, pipe replacements, and elevator installations.

III. Compensation Plans

  1. Monetary Compensation: The compensation standard is not less than 110% of the market price of surrounding commercial housing, with higher standards in some areas (e.g., the appraisal price in Dong'an No.1 Village, Shanghai, reached 135,000 yuan/㎡, 15% higher than the second-hand housing price in the same area).
  2. Property Rights Exchange: New houses are exchanged based on area ratios (e.g., residential buildings in Handan are exchanged at a ratio of 1:1.1, with a maximum of 1:1.2 for homestead houses), and a guaranteed minimum area is provided for those with less than 30 square meters per person.
  3. Housing Voucher Settlement: Choosing housing vouchers allows for flexible purchase of new houses, with specific policies varying by region.
  4. Original Site Relocation/Off-Site Resettlement: After demolishing the old house, one can choose to exchange for a new house at the original site or a designated location, potentially with a larger area and more convenient living conditions.

IV. Policy Bases and Trends

The State Council's "15th Five-Year Plan for Urban Renewal" clearly states the renovation of more than 500,000 non-complete housing units, including Grade C and D dangerous houses and prefabricated panel houses, and promotes seismic reinforcement of houses in earthquake-prone areas. The Ministry of Housing and Urban-Rural Development requires strict control over large-scale demolitions in urban renewal to avoid excessive real estate development and explores sustainable renewal models, with demolition and reconstruction gradually developing towards "precision" and "orderliness".

Suggestions: Residents should first confirm the house safety appraisal grade, inquire about local urban renewal or expropriation plans, clarify property rights, communicate with neighbors about their intentions, and understand compensation plans and funding arrangements in advance.