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National Policies on Prefabricated Housing

Admin September 18, 2026

The national policies on prefabricated housing (prefabricated buildings) primarily focus on promotion, while also providing flexibility for specific scenarios and building types. This is reflected in aspects such as implementation scope, exemption policies, connections to demolition and reconstruction, and planning guidance.

In terms of promoting the implementation scope of prefabricated buildings, some regions have clearly specified that projects with a total above-ground floor area exceeding a certain scale among newly constructed residential, public, and industrial buildings must, in principle, meet the requirements for prefabricated building indicators. For example, Shanghai stipulates that residential buildings with a total of three floors or less (including three floors) are exempt, but other newly constructed residential buildings must meet the standards of a monomer prefabrication rate of no less than 40% or an assembly rate of no less than 60%. This policy aims to promote the widespread application of prefabricated buildings in various types of newly constructed buildings by clarifying indicator requirements and enhancing the level of building industrialization.

Regarding exemption policies for specific types of buildings, considering the characteristics and actual needs of different building types, the state provides flexibility by exempting certain building types from the requirement for prefabricated construction. For instance, in residential buildings, when the above-ground area of non-residential functional buildings (such as sales offices and shops) accounts for no more than 10%, independent monomers with an area of less than 3,000 square meters are exempt. In industrial buildings, when the above-ground area of administrative office and living service facilities accounts for no more than 15%, office and living buildings with an area of less than 3,000 square meters are exempt. Additionally, special projects such as major integrated circuit manufacturing projects and shallow silos in newly constructed grain storage facilities are also exempt. These exemption policies help balance the relationship between the promotion of prefabricated buildings and actual engineering needs.

In terms of the connection between demolition, reconstruction, and prefabricated housing, policies from the Ministry of Housing and Urban-Rural Development point out that buildings requiring demolition and reconstruction during urban renewal include "dilapidated prefabricated panel houses" due to their short service life and poor quality. It is necessary to simultaneously construct long-term rental housing at low to medium prices and with small to medium-sized units to provide living space for groups such as new citizens. This policy reflects the state's concern about the quality issues of prefabricated housing and its determination to improve living conditions through demolition and reconstruction.

Regarding national planning guidance, the "15th Five-Year Plan" for Urban Renewal proposes promoting the transformation and upgrading of old neighborhoods and inefficient industrial parks, developing intelligent construction and modern building industry chains, and indirectly supporting the application of new construction methods such as prefabricated buildings. This planning guidance provides broader space and opportunities for the development of prefabricated buildings.