Demolition of Prefabricated Panel Buildings

Starting from 2026, prefabricated panel buildings will not be comprehensively demolished; only specific types of buildings will be included in the demolition scope, which includes the following four categories:

1. Prefabricated panel buildings identified as meeting the D-grade dangerous building standard
According to the requirements of the 'Notice on Preventing Large-scale Demolition and Construction in the Implementation of Urban Renewal Actions', urban renewal must prioritize housing safety. If a prefabricated panel building is identified by a professional institution as a D-grade dangerous building (i.e., with foundation subsidence, severe damage to the main structure, and where renovation cannot solve the fundamental problems), it must be demolished. For example, in the dynamic updating mechanism for filing D-grade dangerous buildings in cities, the demolition and renovation of D-grade dangerous buildings are prioritized to eliminate safety hazards.

2. Buildings with substandard disaster resistance capabilities that cannot be improved through reinforcement and renovation
Some prefabricated panel buildings, although stable in daily use, do not meet current standards for earthquake resistance, flood resistance, and other performance aspects. If they still cannot meet safety requirements after reinforcement and renovation (e.g., old prefabricated panel buildings are prone to overall collapse during earthquakes), they may be included in the demolition scope. The determination of such buildings requires combining professional inspection reports to ensure the scientific nature of the demolition decision.

3. Buildings that conflict with urban infrastructure construction plans
When prefabricated panel buildings are located within the control areas of urban infrastructure such as subways, bridges, and road expansions, the buildings need to be demolished according to the plan to safeguard public interests. Such demolitions are usually accompanied by clear project progress requirements, and compensation plans are announced in advance to ensure the rights and interests of residents.

4. Low-intensity buildings in urban core areas where the benefits of development can cover the costs
In urban core areas with high land value, if the comprehensive benefits of new construction projects after demolishing low-density prefabricated panel buildings (such as commercial value and public space enhancement) can cover the demolition costs and meet the needs of urban functional optimization, they may be demolished. Such decisions require a comprehensive assessment of market benefits and public interests to avoid excessive real estate development.

Demolition Compensation Methods

• Monetary Compensation: The costs are calculated by a third-party appraisal company, including housing value, decoration compensation, moving expenses, transitional rental expenses, and signing bonuses, suitable for those with cash needs or planning to purchase housing elsewhere.
• Property Exchange: Provides in-situ relocation or off-site resettlement housing, suitable for groups seeking stable residence. Attention should be paid to the location and transportation conditions of the resettlement housing in the contract.
• Housing Vouchers: The specific rules are not clear and are subject to local policies.

Policy Restrictions
The Ministry of Housing and Urban-Rural Development requires strict control over large-scale demolitions in urban renewal to prevent excessive real estate development and explore sustainable models. Therefore, the demolition of prefabricated panel buildings must strictly adhere to the principles of safety, necessity, and compliance to avoid blind demolitions.