Renovation of Prefabricated Panel Houses

The renovation of prefabricated panel houses involves three aspects: renovation methods, policy guidance, and compensation plans, as detailed below:

Renovation Methods: Coexistence of Reinforcement and On-Site Reconstruction

1. Reinforcement: For prefabricated panel houses with a long age but not yet classified as dilapidated, a comprehensive structural safety assessment is required, focusing on the width of cracks in the prefabricated panels and their connection status with the ring beams. Based on the assessment results, special treatments for cracks (such as grouting repair), replacement of rusted bolts, repainting of exterior walls with reinforcement grouting, and the addition of structural columns to enhance structural stability are carried out. For example, a 30-year-old prefabricated panel house regained its safety through such renovations.
2. On-Site Reconstruction: For severely problematic old prefabricated panel buildings (such as those with water leakage from the upper floors, aging electrical wiring, poor sound insulation, etc.), with a typical design lifespan of only about 40 years, some of which have been in service beyond their lifespan and even become dilapidated, on-site reconstruction is considered a more thorough solution. Reconstruction can address existing structural defects and improve living quality.

Policy Guidance: Gradual Elimination and Categorized Demolition

1. Prohibition of New Construction and Gradual Phase-Out: Policies in 2023 clearly stipulate that the construction of new, renovated, or expanded prefabricated panel houses and other buildings that do not meet safety standards is prohibited within urban construction land areas. Existing houses will be gradually demolished based on actual conditions.
2. Priority Demolition of Three Types of Houses: New policies in 2025 specify three types of prefabricated panel houses for priority demolition:
   • Grade D Dilapidated Houses: Houses with severe damage to the main structure, such as foundation settlement exceeding 5 centimeters, cracks in load-bearing walls wider than 1 millimeter, and seismic resistance less than 70% of the current standard.
   • Houses Built Before the 1980s: Houses with seismic resistance less than 70% of the current standard, making them difficult to withstand natural disasters.
   • Houses Affecting Urban Planning: Houses located within the planning scope of major infrastructure projects such as subways and elevated bridges.

Compensation Plans: Diversified Options to Protect Rights and Interests

1. Monetary Compensation: The compensation standard is not less than 110% of the market price of surrounding commercial housing. For example, the assessed price in Dong'an First Village, Shanghai, is 15% higher than the second-hand housing price in the same area. In Wenzhou, Zhejiang, prefabricated panel houses built before 2000 are compensated at 2800 yuan/㎡, 16.7% higher than brick-concrete houses.
2. Property Rights Exchange: Innovating traditional resettlement methods, residential buildings in Handan are exchanged at a ratio of 1:1.1, and homestead houses at a maximum of 1:1.2, with a guaranteed minimum area of 30 square meters per person.
3. Housing Voucher Resettlement: Housing vouchers are provided as a form of compensation, allowing displaced households to autonomously select housing within a designated range, increasing flexibility in choice.