National Policy on Demolition of Prefabricated Houses

The national policy on the demolition of prefabricated houses does not advocate for a 'blanket demolition' approach. Instead, it adopts a 'tailored and categorized strategy' based on factors such as the safety condition of the houses and urban planning needs. The specific policy details are as follows:

I. Scope of Demolition

1. Dangerous Houses: Prefabricated houses that have been identified by professional institutions as having safety hazards and cannot meet residential needs through renovation and reconstruction must be demolished and rebuilt. Examples include prefabricated panel houses with structural damage or those unable to withstand natural disasters.
2. Houses on Municipal Planning Land: Prefabricated houses located within the scope of planned land for urban development needs (such as the construction of high-speed railways or road widening) will be demolished.
3. Old Buildings Incompatible with Urban Planning and Functional Requirements: Houses that are out of harmony with the surrounding environment, inconsistent with the direction of urban development, or lacking in functionality need to be re-laid out according to the plan.

II. Principles of Demolition

1. Control of Large-Scale Demolition: The Ministry of Housing and Urban-Rural Development requires that urban renewal should prevent excessive real estate development, explore sustainable models, and limit the area of demolition and the proportion of additional construction.
2. Precision and Orderliness: Demolition should adhere to the principles of 'precision' and 'orderliness', increase the proportion of on-site resettlement, and strengthen the protection of historical and cultural heritage.
3. Resident Consensus and Fundraising: Demolition and reconstruction should take into account the wishes of residents and the situation of fundraising. For example, Building 9 in Area 2 of Xiangnongqiao Community, Yuhua District, Changsha City, Hunan Province, completed its renovation through owner-initiated renewal and original demolition and reconstruction, and received financial incentives.

III. Compensation Methods

1. Monetary Compensation: Calculated comprehensively based on factors such as the prices of surrounding second-hand houses, house value, decoration compensation, and moving expenses, and determined by a third-party appraisal company.
2. Property Rights Exchange: Providing resettlement houses (either on-site relocation or off-site relocation), with the difference in area being refunded or supplemented.
3. Housing Voucher Compensation: Some regions issue housing vouchers that can be used to purchase designated housing sources.

IV. Policy Background
The joint guidance issued by the National Development and Reform Commission and the Ministry of Housing and Urban-Rural Development clearly states that the renovation of prefabricated houses should follow the principle of 'renovating wherever possible and feasible', without advocating for a 'blanket demolition' approach. Under the old renovation policy, only 20% of old houses require complete demolition, with the rest primarily undergoing renovation and reconstruction.