New Policy on Prefabricated Panel Houses

The core of the new policy on prefabricated panel houses in 2026 is 'categorized governance and renovation,' which relies on safety assessment results to replace comprehensive demolition with governance measures, while strengthening resident participation and financial support.

I. Policy Orientation: From 'Demolition' to 'Categorized Governance'

1. Renovation Goals: According to the State Council's '15th Five-Year Plan for Urban Renewal,' over the next five years, more than 500,000 units (rooms) of C- and D-grade dangerous housing, prefabricated panel houses, and non-complete housing will be renovated, with a focus on addressing safety hazards and functional deficiencies.
2. Categorized Disposal Principles:
   • D-grade dilapidated houses: Due to severe structural damage, accelerated demolition and reconstruction are required;
   • Prefabricated panel houses: Depending on the safety grade (A-D), reinforcement, seismic upgrading, or functional enhancements will be implemented. Houses over 30 years old do not automatically qualify for demolition; instead, a comprehensive assessment of structural safety is necessary.
3. Core Logic Shift:
   • Financial balance: Following adjustments in the real estate market, the high costs of 'large-scale demolition and reconstruction' make governance and renovation more economically viable;
   • Resident willingness: Projects must meet the criteria of '95% consent for application and 100% signing rate' before initiation to avoid conflicts arising from forced relocation.

II. Local Practice: A Case Study of Yuecheng District, Shaoxing

1. Application and Financial Support:
   • Communities must solicit opinions from homeowners, and once the consent rate meets the standard, submit an application for review and inclusion in the annual plan;
   • Incentives include floor area ratio rewards, exemption from supporting facility fees, withdrawal of special maintenance funds and housing provident funds, among others;
   • Projects included in the plan are eligible for elevator installation subsidies (calculated based on the number of original stair units).
2. Resettlement and Property Rights Management:
   • During in-situ renewal, homeowners select housing based on their original floor and location, with resettlement organized by the local township or street office;
   • After renewal, materials such as land use verification opinions and completion acceptance records must be submitted for independent application for real estate registration.
3. Acquisition of Affordable Housing: The additional housing units built in the community can be used for affordable housing, with social entities encouraged to make acquisitions.

III. Key Points for Residents to Note

1. Safety assessment as the core basis: Professional institutions must assess the housing grade. Maintenance is the primary approach for A/B-grade houses, partial reinforcement for C-grade houses, and demolition only for D-grade houses.
2. Compensation standards: If expropriation procedures are initiated, compensation will be based on the 'market price of similar real estate on the date of the expropriation decision announcement' as the minimum, determined by assessment agencies considering factors such as location, purpose, and area. There is no nationwide uniform 'discount for prefabricated panel houses.'
3. Proactive participation in consultations: Residents should address family disputes and inheritance divisions in advance. Achieving consensus is challenging, so active cooperation with community consultations is essential.