Demolition of Prefabricated Perforated Panel Houses

The demolition of prefabricated perforated panel houses (prefabricated panel houses) is not carried out comprehensively. Instead, it takes the results of housing safety appraisals as the core basis and adopts targeted measures in combination with urban renewal plans. Only D-grade dilapidated houses require mandatory demolition, while the rest are given priority for renovation and transformation.

I. Renovation and Transformation as the Priority, Not Comprehensive Demolition

According to the State Council's "15th Five-Year Plan for Urban Renewal" in 2026, it clearly proposes to "steadily advance the renovation and transformation of prefabricated panel houses", with the goal of renovating more than 500,000 sets (units) of C- and D-grade dangerous housing and prefabricated panel houses. The Ministry of Natural Resources and the Ministry of Housing and Urban-Rural Development have set two red lines: the demolished floor area within an urban renewal unit shall not exceed 20% of the total existing floor area, and the demolition-to-construction ratio shall not be greater than 2. According to calculations by the China Index Academy, among the old residential communities listed in the renovation plan nationwide, the proportion that truly requires demolition and reconstruction is only about 17%. This indicates that the core of the policy is "precise and orderly" renewal, avoiding large-scale demolition and construction.

II. Basis for Demolition: Housing Safety Appraisal Report

The key to whether a house should be demolished lies in the rating results of the "Standard for Dangerous Housing Appraisal" (JGJ 125-2016) issued by a qualified institution:

• D-grade dilapidated houses: The load-bearing structure has failed, and the overall house is dangerous, requiring "demolition wherever possible";
• C-grade dilapidated houses: Some load-bearing structures are unsafe, and measures such as repair and reinforcement, reconstruction, renovation, or original-site demolition and reconstruction can be taken;
• A- and B-grade houses: The structure is safe or basically safe, and only repair and renovation are required.
  For example, two prefabricated panel buildings with the same age of 30 years may be rated at different levels due to structural differences, directly affecting the handling method.

III. Three Types of Houses Requiring Demolition and Reconstruction

According to the notice of the Ministry of Housing and Urban-Rural Development, the following houses may be demolished and reconstructed:

• Old residential communities identified as dilapidated houses: They are in a state of disrepair for a long time, have poor structures, and cannot meet residential needs through renovation;
• Dilapidated prefabricated panel houses in cities: They have a short service life, poor quality, and poor sound insulation, and it is necessary to simultaneously build low- and medium-priced rental housing;
• Old buildings that do not conform to urban planning: They are out of harmony with the surrounding environment or do not match in function, requiring re-layout.

IV. Selection of Compensation Methods

If a house is included in the scope of demolition, residents can choose the following compensation methods:

• Monetary compensation: It is paid in a lump sum according to the housing price (including decoration and moving expenses) determined by a professional appraisal institution;
• Property rights exchange: It involves returning to the original site or relocating to another place. The address, area, and delivery date of the resettlement housing need to be clarified;
• Housing voucher resettlement: It provides housing purchase vouchers for purchasing designated housing sources.

Summary: The demolition of prefabricated perforated panel houses takes the results of safety appraisals as the core. The policy emphasizes "giving priority to renovation and transformation and precise demolition". Residents need to pay attention to the appraisal level of their houses and the details of compensation plans to avoid affecting their rights and interests due to a lack of information.