Back to blog
Article

Damage to Old-Style Prefabricated Panel Houses

Admin September 18, 2026

The handling of damage to old-style prefabricated panel houses should be based on a comprehensive consideration of the house's safety status, renovation value, and residents' conditions. The specific steps are as follows:

I. Professional Assessment of House Safety Grades

According to the current "Standard for Dangerous House Appraisal" JGJ 125 - 2016, a professional institution needs to make a comprehensive judgment based on the location, length, depth, direction, quantity, and development of cracks, combined with the connection status of load-bearing walls, beams, panels, columns, foundations, and components, as well as the overall deformation of the house. Houses are ultimately classified into four grades:

  • Grade A: The structural load-bearing capacity meets the requirements for normal use, with no dangerous points;
  • Grade B: The structural load-bearing capacity basically meets the requirements, but individual components are in a dangerous state;
  • Grade C: Some load-bearing structures do not meet safety requirements, and parts of the house are in a dangerous state;
  • Grade D: The load-bearing structure can no longer meet safety requirements, and the entire house is in a dangerous state.
    According to the survey data from the Ministry of Housing and Urban-Rural Development in 2026, among the prefabricated panel residential buildings in urban areas across the country, D-grade dilapidated houses account for less than 4%, and C-grade houses number about 48,000, with more than 90% being Grade A and B.

II. Selection of Handling Methods Based on Appraisal Results

  1. Routine Maintenance and Local Repairs
    If the house is generally safe and the problems are concentrated in areas such as roof leaks, exterior wall peeling, corridor damage, blocked water supply and drainage, or aging electrical wires, local repairs can be carried out on the roof, exterior walls, corridors, drainage, water supply, gas, heating, and fire protection.

  2. Renovation and Seismic Strengthening
    The 2026 urban renewal policy proposes to conduct special physical examinations for urban residential communities built 20 years or more ago and promote the renovation and seismic strengthening of prefabricated panel houses to enhance structural safety.

  3. Demolition
    Demolition is only allowed when the house is appraised by a professional institution as having safety hazards or has been included in the urban renewal or demolition planning area. Even if it is appraised as a D-grade dilapidated house, the property rights status must be considered, and all property owners must reach a consensus before implementation.

III. Compensation Methods for Demolition

If the house needs to be demolished, the compensation methods include:

  • Monetary Compensation: Calculated comprehensively based on the prices of surrounding second-hand houses, the value of the house itself, decoration compensation, moving expenses, temporary rental expenses during the transition, and early signing bonuses. The amount is determined by a third-party appraisal company and is suitable for people with cash needs or those planning to buy a house elsewhere.
  • Property Rights Exchange: Provide replacement housing, with the difference in area refunded or supplemented. There are two methods: in-situ relocation and off-site resettlement, suitable for residents seeking stable housing. The location of the replacement housing should be clearly specified in the contract.