Prefabricated Panel Structure Housing Policy

The prefabricated panel structure housing policy covers aspects such as overall planning, renovation methods, compensation plans, and handling of existing issues.

Overall Planning and Objectives: The State Council issued the '15th Five-Year Plan for Urban Renewal', clarifying the objectives, indicators, and key tasks for urban renewal work over the next five years. The governance and renovation of prefabricated panel houses are important components of this plan, aiming to enhance urban housing safety and living quality.

Renovation Methods and Requirements:

• Demolition and Reconstruction: The Ministry of Housing and Urban-Rural Development requires strict control over large-scale demolitions in urban renewal, promoting 'precision' and 'orderly' development in demolition and reconstruction. According to the new policy in 2025, the focus for prefabricated panel houses is on repair and renovation, with demolition only for buildings that meet the criteria for dangerous structures. Three types of buildings are prioritized for demolition: First, Class D dangerous buildings with structural damage, such as foundation settlement exceeding 5 cm, cracks in load-bearing walls wider than 1 mm, and seismic resistance below 70% of current standards; second, buildings that are unable to withstand natural disasters, such as those with seismic resistance below 70% of current standards; third, buildings that affect urban planning, such as those located within the planning areas for major infrastructure projects like subways and elevated highways.
• Renovation Quantity: Renovate more than 500,000 sets (rooms) of Class C and D dangerous housing on state-owned land within the built-up areas of cities and county towns, including prefabricated panel houses. This aims to basically eliminate safety hazards in documented Class D dangerous housing and steadily advance the governance and renovation of prefabricated panel houses and seismic reinforcement in earthquake-prone areas.

Compensation Plans: For the demolition of prefabricated panel houses, the government offers multiple compensation methods. Monetary compensation is not less than 110% of the market price of surrounding commercial housing; property rights exchange innovates traditional resettlement methods, with residential buildings in Handan exchanged at a ratio of 1:1.1, and homestead houses up to 1:1.2, with a guaranteed minimum area of 30 square meters per person if insufficient; the housing voucher resettlement system is also being implemented.

Existing Issues and Handling: Existing prefabricated panel houses generally suffer from weak seismic resistance, poor sound and thermal insulation, and a service life of approximately 30-50 years. Among the approximately 7.8 million sets of prefabricated panel houses nationwide, 67% have structural aging issues, and 41% have hidden fire safety hazards. Since 2022, the old housing renovation policy has been implemented, focusing on repair and renovation of prefabricated panel houses, with demolition only for buildings that meet the criteria for dangerous structures. Some regions have already initiated demolition work.