House Demolition: Prefabricated Panels

In 2026, prefabricated panel buildings will not be subject to “comprehensive demolition”. The core policy is “categorized handling, prioritizing high-risk cases”, with renovation focusing on preservation and repair, and demolition targeting only specific high-risk buildings. Specific policies and practices are as follows:

I. Policy Background and Core Principles
Since 2025, the renovation of prefabricated panel buildings has been incorporated into the urban renewal system. The Ministry of Housing and Urban-Rural Development has explicitly required “preventing large-scale demolition and construction” and advocates a combination of “preservation and renovation” and “demolition and reconstruction”. The policy goal is to enhance living safety, comfort, and property value through categorized handling while preserving community social networks. Currently, no authoritative document has announced the initiation of comprehensive demolition in 2026, and the scope of renovation is strictly limited to buildings with safety hazards or those affecting urban planning.

II. Types of Buildings Prioritized for Demolition

1. Grade D Dangerous Buildings: If professional institutions determine that foundation settlement exceeds 5 centimeters, cracks in load-bearing walls are wider than 1 millimeter, or the seismic resistance is less than 70% of the current standard, mandatory demolition is required.
2. Buildings with Inadequate Disaster Resistance: This includes buildings with seismic resistance below 70% of the current standard or those vulnerable to damage in floods and geological disasters.
3. Buildings Affecting Urban Planning: Residential buildings located within the planning scope of major infrastructure projects such as subways and elevated highways.

III. Renovation Methods and Implementation Ratios

1. Demolition and Reconstruction: For buildings with severe structural damage that cannot meet safety requirements through reinforcement, the reconstructed area can be increased by 30%, and modern facilities such as elevators and scientific lighting can be equipped.
2. Preservation and Renovation: For buildings with safe structures but outdated functions, their service life can be extended through reinforcement, elevator installation, pipeline updates, etc. Nearly 65% of renovation projects nationwide adopt this method.

IV. Resident Resettlement Plans

1. Monetary Compensation: The compensation standard is not less than 110% of the market price of surrounding commercial housing (e.g., the assessed price in Dong'an No.1 Village, Shanghai, reached 135,000 yuan/㎡, 15% higher).
2. Property Rights Exchange: Replacement is carried out at a ratio (e.g., Handan 1:1.1), and for households with a per capita housing area of less than 30㎡, the minimum area is guaranteed.
3. Housing Voucher Resettlement: Residents can independently choose resettlement housing using housing vouchers, increasing flexibility in selection.

V. Policy Goals and Long-Term Impacts
After renovation, the living environment will achieve a triple improvement in safety performance, comfort, and property value while avoiding community disruption caused by large-scale demolition and preserving the local social atmosphere and acquaintance networks. The policy emphasizes “precise policy implementation” to avoid resource waste and ensure maximum renovation benefits.