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Removal of Prefabricated Panel Houses in Rural Areas

Admin September 18, 2026

The removal of prefabricated panel houses in rural areas should be classified and handled according to the safety condition of the houses. There are no unified removal regulations, and it is necessary to follow legal procedures and be subject to policy restrictions.

I. Basis for House Safety Appraisal and Classification Handling

According to Article 9 of the 'Regulations on the Administration of Dangerous Houses in Cities (Revised in 2004)', prefabricated panel houses in rural areas should be classified and handled after being appraised by professional institutions:

  • Grade D Dangerous Houses: If a house is appraised as Grade D (the load-bearing structure has completely failed and has no repair value), it should be immediately removed in its entirety.
  • Non-Grade D Dangerous Houses: Houses classified as Grade A (structurally safe), Grade B (basically safe), or Grade C (some load-bearing structures do not meet safety requirements) are usually continued to be used through repair and reinforcement, functional upgrades, etc., rather than removal. For example, some regions explicitly adopt repair and reinforcement measures for Grade C dilapidated houses to avoid a one-size-fits-all removal approach.

II. Legal Procedures and Compensation Requirements for Removal

If a house needs to be removed, strict legal procedures must be followed:

  • Land Withdrawal Approval: According to Article 66 of the 'Land Administration Law of the People's Republic of China', the rural collective economic organization must report to and obtain approval from the people's government that originally approved the land use before it can withdraw the land use right.
  • Compensation Standards: Appropriate compensation should be given to the land user, and the specific standards shall be implemented in accordance with local regulations to ensure that rights and interests are not impaired.

III. Policy Trends and Local Practice Directions

National policies tend towards 'governance and renovation' rather than comprehensive removal:

  • Governance and Renovation Focus: The '15th Five-Year Plan for Urban Renewal' issued by the State Council in 2026 proposes to accelerate the removal and renovation of Grade D dangerous housing, steadily promote the governance and renovation of prefabricated panel houses and the seismic reinforcement of houses in earthquake-prone areas, with a plan to renovate more than 500,000 sets (units).
  • Diversified Resettlement Methods: For houses that meet the removal conditions, support is provided for reconstruction after in-situ removal or housing voucher resettlement, etc., to meet the diverse needs of residents.

IV. Removal Scope and Proportion Restrictions

The 'Notice on Several Measures to Further Support Urban Renewal Actions' jointly issued by the Ministry of Natural Resources and the Ministry of Housing and Urban-Rural Development in 2026 clarifies the boundaries of 'removal':

  • Removal Area Limit: Within one urban renewal unit, the removed building area shall, in principle, not exceed 20% of the current total building area.
  • Removal-to-Construction Ratio Limit: The removal-to-construction ratio of the project shall not be greater than 2 to avoid over-development and ensure the sustainability of the renewal actions.