Value of Prefabricated Panel Structure Houses

Prefabricated panel structure houses are currently facing significant challenges in terms of value decline, with market performance and policy directions not supporting their value preservation and appreciation.

I. Significant Market Trading Difficulties and Continuous Price Declines

Prefabricated panel houses have poor liquidity in the second-hand housing market, with long listing periods and substantial price reductions. For example, a 55-square-meter property in Chengxi, Shenzhen, was sold only after its listing price dropped from 920,000 yuan to 760,000 yuan, while similar properties in second-tier cities saw listing prices drop from 1.5 million yuan to 1 million yuan without any buyers. Data shows that in the first quarter of 2026, the average price of some traditional school district prefabricated panel houses in Shenzhen fell by more than 60% from their peak, while similar properties in core areas of Beijing saw declines of 35%-45%. The low acceptance of prefabricated panel houses by homebuyers directly leads to a shrinkage in their market value.

II. Prominent Residential Function Defects, Failing to Meet Modern Demands

Prefabricated panel houses generally suffer from issues such as poor sound insulation, weak thermal insulation, aging pipelines, and susceptibility to leaks, and most lack elevator and parking space facilities. These shortcomings result in a significantly lower living comfort compared to newly built commercial housing, making it difficult to support property prices even in core locations. Homebuyers are more inclined to choose housing with complete functions and higher quality, further compressing the market space for prefabricated panel houses.

III. Policy Direction Shift, Disappearance of Demolition Expectations

According to the 2026 government work report and the "15th Five-Year Plan for Urban Renewal," prefabricated panel houses will undergo "steady governance and renovation" rather than uniform demolition. Only D-grade dilapidated houses will undergo accelerated demolition and renovation, while other houses may be addressed through reinforcement, partial reconstruction, or renovation of old residential areas. This means that the prefabricated panel structure itself will no longer serve as a basis for value appreciation based on demolition expectations, and with the disappearance of policy dividends, its value will further weaken.

IV. Cost-Value Divergence, High Maintenance Costs

Although the construction cost of new prefabricated panel houses is low (300-600 yuan/㎡), old prefabricated panel houses have high maintenance costs and difficulty in obtaining loans, resulting in actual holding costs far exceeding those of new houses. Banks have stricter loan approval processes for prefabricated panel houses, and some properties may not even qualify for mortgage loans, further weakening their market liquidity. The contradiction between high maintenance costs and low market value leads prefabricated panel houses into a "depreciation cycle."

In conclusion, due to market trading difficulties, residential function defects, policy direction shifts, and cost-value divergence, the value of prefabricated panel structure houses is currently on a downward trend and is unlikely to reverse in the short term.