National Rectification of Prefabricated Panel Houses
The policies for the national rectification of prefabricated panel houses mainly include classified disposal, prioritized demolition of specific types of houses, and the provision of multiple compensation and resettlement plans.
Classified Disposal Policies: The state has clearly adopted a classified disposal approach of 'retention, renovation, and demolition' for prefabricated panel houses, rejecting large-scale demolition and construction. The handling of a house is based on a housing safety appraisal report issued by a qualified institution, with appraisal results divided into four grades: A, B, C, and D. Grade A houses have intact structures with no dangerous components and can be safely inhabited, directly included in regular old residential area renovations. Grade B houses have stable main structures with only a few minor component issues that do not affect overall safety, with priority given to local maintenance and upkeep. Grade C houses are partially dilapidated, with some load-bearing components showing defects, not requiring immediate demolition, with the optimal solution being targeted structural reinforcement. Grade D dilapidated houses have severely damaged load-bearing structures throughout the building, posing a risk of imminent danger at any time, with no value in reinforcement or repair, and according to policy requirements, such buildings should be promptly demolished and rebuilt. Relevant research data shows that over 70% of prefabricated panel buildings on the market, after appraisal, do not fall into the category of Grade D dilapidated houses and can continue to be used safely after repair and reinforcement, with only a minority truly requiring demolition and reconstruction.
Types of Houses Prioritized for Demolition: The 2025 demolition policy precisely targets two types of high-risk houses, namely Grade D dilapidated houses and prefabricated panel houses built before the 1980s. In addition, houses that are difficult to withstand natural disasters, such as buildings with seismic resistance below 70% of current standards, or houses that are particularly vulnerable in the face of floods, as well as houses affecting urban planning, such as residential buildings within the planning scope of major infrastructure projects like subways and elevated highways, are also prioritized for demolition.
Compensation and Resettlement Plans: For the demolition of prefabricated panel houses, the government provides multiple compensation methods to meet the personalized needs of residents, including monetary compensation, property rights exchange, housing voucher resettlement systems, and transitional rental subsidies. At the same time, the government will provide new housing resettlement plans, possibly including the provision of newly built residences or resettlement communities, to ensure residents have suitable living conditions, and take relevant measures to provide employment opportunities, education, medical care, and other social security protections to safeguard the legitimate rights and interests of demolished residents.
