Demolition of Prefabricated Panel Houses in Zhejiang

In Zhejiang, taking Yuecheng District, Shaoxing City as an example, the demolition policy for prefabricated panel houses adopts a combined renewal model of in-situ 'self-initiated renewal' + off-site 'old house for new house'. At the national level, the 2026 policy focuses on centralized governance and renovation rather than comprehensive demolition.

Key Points of the Policy in Yuecheng District, Shaoxing City, Zhejiang

• Renewal Principles and Models: Adhering to the principles of 'owner-led, government-guided, adhering to the bottom line, exploring innovation, pilot first, and steady progress', which aligns with the current trend of replacing old consumer goods with new ones. The combined model of in-situ 'self-initiated renewal' + off-site 'old house for new house' is adopted. The owners legally determine the implementation entity. Through appropriate capacity expansion of the renewal block area, a closed and balanced operation of the project is achieved. In principle, at least 60% of the owners should opt for in-situ renewal. Owners who choose off-site renewal can exchange their houses for existing housing of equal value, and the property rights of their houses are purchased by the project implementation entity with funds.
• Project Application Process: The community takes the lead in soliciting preliminary opinions from all owners in the residential area regarding self-initiated renewal. When the proportion of owners agreeing to the renewal reaches 95% or above, the property owners' committee or the community submits an application for the implementation of the renewal project to the relevant town (sub-district) with the relevant written materials. After preliminary approval by the town (sub-district), it is reported to the district renewal office (district construction bureau). After review by the district renewal office (district construction bureau), it is submitted to the district government for approval. Once the project is approved, it is included in the annual implementation plan for renewal projects in Yuecheng District, and the entrusted project implementation entity carries out the implementation in phases and batches according to the plan.

Policy Orientation at the National Level in 2026

• Centralized Governance and Renovation: Prefabricated panel buildings are not subject to comprehensive demolition but centralized governance and renovation. The '15th Five-Year Plan for Urban Renewal' issued by the State Council proposes to renovate more than 500,000 sets (units) of C- and D-grade dangerous housing, prefabricated panel houses, and non-complete housing, and steadily promote the governance and renovation of prefabricated panel houses.
• Two Lines for 'Demolition': The 'Notice on Further Supporting Urban Renewal Actions' jointly issued by the Ministry of Natural Resources and the Ministry of Housing and Urban-Rural Development has drawn two lines for 'demolition'. Within an urban renewal unit, the demolished floor area should not exceed 20% of the current total floor area in principle, and the demolition-to-construction ratio of the project should not be greater than 2.
• Based on Appraisal Reports: Whether to demolish or not mainly depends on the housing safety appraisal report issued by a qualified institution. According to the 'Standard for Dangerous Housing Appraisal' (JGJ 125 - 2016), houses are classified into four grades: A, B, C, and D. Grade D houses should be demolished as much as possible, while grade C houses can be repaired and reinforced, rebuilt, renovated, or rebuilt in the original place.