Back to blog
Article

Reconstruction Policy for Prefabricated Panel Houses

Admin September 19, 2026

The reconstruction policy for prefabricated panel houses mainly includes aspects such as applicable conditions, applicants, implementation procedures, cost-sharing, and policy orientation.

Applicable Conditions: The house must be located within the urban planning area, hold a legal real estate ownership certificate, and belong to a non-single-ownership residential community. It must meet the conditions specified in the local self-initiated renovation and transformation plan for old urban residential communities, such as being relatively old in age and having structural safety hazards. It must also be certified by a professional institution as a Grade D dilapidated house or having no value for repair and reinforcement.

Applicants: Residential communities or individual buildings rated as Grade C or D dilapidated houses with strong renovation意愿 (willingness) from residents can submit application reports as a whole community or individual building. Even if not rated as a dilapidated house, if all neighbors in the entire building sign and agree, they can also seek pilot opportunities.

Implementation Procedures: Establish a self-initiated renovation committee in accordance with the law, or entrust a property management committee or a qualified legal entity as the implementation主体. After obtaining approval from a statutory proportion of owners through a vote, submit an application to the local township government. Following preliminary review and joint on-site inspections by multiple departments to assess feasibility, prepare a renovation plan (including core elements such as fundraising, construction sequence, and property rights disposition). Follow procedures for joint plan review, planning, and construction permits. After project completion, pass a joint inspection to proceed with real estate registration.

Cost-Sharing: Renovation costs are jointly borne by the property owners, generally shared based on the original building area through negotiation. Eligible projects can apply for superior subsidies for dilapidated house renovations. Property owners and their spouses can withdraw housing provident fund to cover their share of the costs, while also enjoying policies such as reductions or exemptions in administrative fees, charging the lower limit for operational service fees, and preferential land prices.

Policy Orientation: Officials have clarified that eligible dilapidated prefabricated panel houses can be included in the original-site reconstruction plan. The core approach to urban renewal is to 'conduct an assessment before proceeding,' focusing on renovation and repair rather than demolition and reconstruction. Houses with intact main structures and basically complete facilities should not be arbitrarily demolished. The Ministry of Housing and Urban-Rural Development requires strict control over large-scale demolition, expansion, and relocation, with the demolished building area in a district原则上 (principally) not exceeding 20% of the current total building area, and the demolition-to-construction ratio strictly controlled within two times.