Demolition of Prefabricated Panel Houses in Zhejiang

The demolition of prefabricated panel houses in Zhejiang currently mainly adopts a self-renewal model, with Yuecheng District in Shaoxing City serving as a representative example. The policies and practices are supported by a clear framework and typical case studies.

I. Policy Principles and Models
The demolition of prefabricated panel houses in Zhejiang adheres to the principles of "homeowner-led, government-guided, adhering to bottom lines, exploring innovations, pilot-first, and steady advancement," employing a combined model of "in-situ self-renewal + relocation to new housing." In-situ renewal requires that the participation rate of homeowners be no less than 60% in principle to ensure concentrated renovation意愿 (willingness for renovation). For relocation to new housing, homeowners can exchange their properties for existing housing of equivalent value, with the property rights of their original houses being acquired by the project implementation entity through funding, thereby balancing the needs of different homeowners. This model respects the autonomy of homeowners while avoiding market risks through government guidance, forming a "dual-track" renewal path.

II. Implementation Process and Decision-Making Mechanism
Renovation requires a rigorous process: the community takes the lead in soliciting opinions from all homeowners. Once the consent rate for renewal reaches 95% or above, the homeowners' committee or community submits an application to the town (sub-district) office, which undergoes initial review and then review by the district renewal office (district construction bureau), before finally being submitted to the district government for inclusion in the annual plan. The entrusted entity implements the renovation in phases and batches according to the plan to ensure orderly progress. The key point lies in the "dual 95%" threshold, which involves double checks on homeowner consent rates and government reviews to avoid project stagnation due to differing opinions.

III. Typical Case Studies and Funding Models
The Changcheng Jiaoyuan community in Yuecheng District, Shaoxing City, served as the first pilot project, adopting a "complete demolition and reconstruction" approach. The original 13 five-story prefabricated panel residential buildings were optimized into six 11-story elevator-equipped high-rise buildings, with additional improved housing units and community facilities such as canteens and commercial centers. The project achieved 100% signing among 273 households in just 12 days. However, homeowners were required to raise funds independently, with no renovation subsidies, transition fees, or floor differential coefficients, placing the entire financial burden on the homeowners. This model achieves closed-loop balanced operation of the project through capacity expansion (such as increasing the number of floors), where the revenue from the additional area covers the renovation costs, reducing reliance on public finances.

IV. Policy Background and Trends
Zhejiang Province initiated the exploration of self-renewal for old urban residential communities in 2024, with Yuecheng District explicitly promoting the renewal and renovation of prefabricated panel buildings in 2025, aligning with the trend of replacing old consumer goods with new ones. The policies achieve project self-balance by appropriately expanding the area of renewal blocks, providing a "Zhejiang model" for the renovation of old residential communities across the country. In the future, the self-renewal model may be promoted to more regions, but attention must be paid to the homeowners' ability to raise funds and the compliance of capacity expansion planning.