Demolition of Prefabricated Panel Houses in Shanghai

Whether to demolish prefabricated panel houses in Shanghai should be comprehensively determined based on professional inspection and appraisal results as well as urban renewal policies, rather than adopting a one-size-fits-all approach.

I. Core Policy Principle: Classified Disposal, Strictly Prohibiting Large-Scale Demolition and Construction

According to the '15th Five-Year Plan for Urban Renewal' issued by the State Council in May 2026, the policy tone is clearly set as 'retaining, renovating, and demolishing in a coordinated manner, strictly prohibiting large-scale demolition and construction'. The disposal of prefabricated panel houses requires graded assessment through the 'Standards for the Appraisal of Dangerous Houses', which are divided into four categories:

• Grade D Dangerous Houses: If a house is appraised as Grade D (with a failed load-bearing system and at risk of collapse at any time), it will be included in the demolition and reconstruction list and prioritized for disposal;
• Grade A and B Houses: If appraised as Grade A (structurally safe) or Grade B (basically meeting usage requirements), routine repair measures will be taken to maintain existing functions;
• Grade C Houses: If appraised as Grade C (with local hazards), risks will be eliminated through renovation of old residential areas or seismic reinforcement measures to avoid demolition.

II. Relocation Methods After Demolition: Four Options Available

For prefabricated panel houses that need to be demolished, residents can choose from the following relocation methods according to their own needs:

• Monetary Compensation: Professional appraisal agencies will comprehensively calculate the compensation amount based on the prices of surrounding second-hand houses, house values, and decoration costs to ensure residents' rights and interests;
• Property Rights Exchange: Provide the address, area, house type, and delivery date of the relocation houses. Residents can choose to move back to the original location or relocate elsewhere;
• Housing Voucher Relocation: An additional 20% of the amount will be added on the basis of monetary compensation. Residents can purchase commercial housing in designated areas with housing vouchers to flexibly meet their housing needs;
• Original Demolition and Original Return: Residents will rent houses for transition first. The new houses will be returned according to the original area and additional spaces such as kitchens and bathrooms will be gifted to improve living quality.

III. Long-Term Direction: Gradually Implementing 'Original Demolition and Original Reconstruction'

Qiu Baoxing, the former Vice Minister of the Ministry of Housing and Urban-Rural Development, once suggested gradually implementing 'original demolition and original reconstruction' for prefabricated panel residential buildings built before 2000, adding 10 - 20 square meters of living space per household. However, it should be noted that this suggestion is only a long-term direction reminder. The actual policy still focuses on 'classified renewal' and requires comprehensive decision-making based on the house safety level, urban planning, and residents' wishes.