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Demolition of Prefabricated Houses

Admin September 18, 2026

The demolition of prefabricated houses should be classified and handled based on the type of house, safety conditions, and urban planning needs. The policy emphasizes 'precision' and 'orderly' renewal, prioritizing the demolition of Grade D dilapidated houses, earthquake-resistant inadequate houses, and buildings affecting planning, while providing diversified compensation plans.

I. Three Types of Houses Prioritized for Demolition

  1. Grade D Dilapidated Houses
    Prefabricated panel houses identified as Grade D dilapidated houses (with structural safety reaching a dangerous state) by professional institutions must be demolished. Examples include houses with foundation settlement exceeding 5 centimeters, load-bearing wall cracks wider than 1 millimeter, and earthquake resistance levels less than 70% of the current standard. Taiyuan City has clarified that prefabricated panel houses with an age exceeding 40 years, peeling wall skins, and酥化 (sūhuà, meaning crumbling or disintegrating) brick and soil layers on balcony exterior walls have initiated dilapidated house identification procedures and support demolition and reconstruction.

  2. Houses with Inadequate Earthquake Resistance
    Buildings with earthquake resistance levels less than 70% of the current standard or those with prominent vulnerability in flood disasters need to be prioritized for renovation or demolition. For example, during the Tangshan earthquake, the collapse rate of prefabricated panel houses was three times higher than that of brick-concrete structures, with poor integrity being a fatal flaw. Such houses in earthquake zones or disaster-prone areas require focused inspections.

  3. Houses Affecting Urban Planning
    Residential buildings located within the planning scope of major infrastructure projects such as subways and viaducts need to make way for overall urban planning. For example, due to planning adjustments in Banjieta Village, Beijing, 237 households were relocated to shared-ownership housing, with compensation amounts 20% higher than the assessed value.

II. Differentiated Strategies for Demolition and Renovation

  1. Demolition and Reconstruction
    Applicable to prefabricated panel houses with severe structural safety hazards that cannot meet safety requirements through reinforcement and repair. Taiyuan City explicitly supports 'original demolition and reconstruction,' which means rebuilding within the original land area without exceeding the area and simplifying the approval process.

  2. Retention and Renovation
    For prefabricated panel houses with good structural safety but outdated functional facilities, their service life can be extended through reinforcement and renovation, functional upgrades (such as elevator installation and pipeline renovation). Nearly 65% of renovation projects nationwide adopt the retention and renovation approach, while about 35% adopt the demolition and reconstruction approach.

III. Compensation Plans

The government provides three compensation methods:

  1. Monetary Compensation: Not less than 110% of the market price of surrounding commercial housing (for example, the assessed price of Dong'an First Village in Shanghai reached 135,000 yuan/㎡, 15% higher than the second-hand housing price in the same area).
  2. Property Rights Exchange: Replacement at a ratio (for example, residential buildings in Handan are replaced at a ratio of 1:1.1, and homestead houses at a maximum of 1:1.2), with a guaranteed area supplemented for those with less than 30 square meters per person.
  3. Housing Voucher Settlement: Residents can choose the housing voucher system, with specific policies varying by region.