Can Prefabricated Houses Be Renovated?

Prefabricated houses can be renovated, but the specific approach depends on the results of the housing safety appraisal. According to the '15th Five-Year Plan for Urban Renewal' issued by the State Council, more than 500,000 non-complete housing units, including C- and D-grade dangerous housing and prefabricated panel houses in cities, will be renovated, steadily advancing the renovation of prefabricated panel houses and seismic reinforcement of houses in earthquake-prone areas.

Housing safety appraisals classify houses into four grades: A, B, C, and D, with different disposal approaches for each grade:

• Grade A or B: For prefabricated houses with no major issues in the main structure, the most practical solution is the renovation of old residential areas. For example, if the roof leaks, it will be repaired; if the pipes are aged, they will be replaced; if the fire safety standards are not met, rectifications will be made; and if conditions permit, elevators can be installed. This renovation approach mainly targets local issues in the house for repair and improvement to enhance living comfort and safety.
• Grade C Dangerous Houses: For Grade C prefabricated dangerous houses that still have repair potential, a repair and reinforcement approach will be taken. Reinforcement includes strengthening the walls, beams, columns, floor slabs, foundations, and improving seismic capacity. The central budget's investment in urban renewal has explicitly supported the renovation projects of dangerous and old housing on state-owned land appraised as Grade C or D, with subsidies not exceeding 70% of the total approved project investment, providing financial support for the renovation of Grade C dangerous houses.
• Grade D Dangerous Houses: For Grade D prefabricated dangerous houses where the load-bearing structure has been severely damaged and the entire building is in a dangerous state, they have the highest priority for direct demolition and reconstruction. The building itself can apply for special subsidies from the affordable housing project, while the surrounding infrastructure such as water supply, power supply, gas supply, and roads will be covered by special funds from the central budget's investment.

In addition, eligible dangerous and old prefabricated panel houses can be included in the original demolition and reconstruction plan. However, urban renewal follows the principle of 'assessment before advancement,' with equal emphasis on demolition, renovation, and preservation. The Ministry of Housing and Urban-Rural Development has set strict restrictions, prohibiting large-scale demolition and reconstruction. In principle, the demolished floor area within a district should not exceed 20% of the current total floor area, and the demolition-to-construction ratio should be strictly controlled within two times.