Demolition of Prefabricated Panel Structure Houses

The demolition of prefabricated panel structure houses is not a comprehensive relocation but a precise governance targeting specific types of houses, mainly involving high-risk houses, old houses, houses with weak disaster resistance capabilities, and houses affecting urban planning. Details are as follows:

I. Scope of Demolition

1. Grade D Dangerous Houses: Houses identified as Grade D dangerous houses by professional institutions have reached a dangerous state in terms of structural safety, such as foundation settlement exceeding 5 centimeters, cracks in load-bearing walls wider than 1 millimeter, and seismic resistance levels less than 70% of the current standards. Due to severe systemic damage, the repair costs for such houses are high and the difficulty is great. It is more likely to adopt paths such as demolition and reconstruction, expropriation and renovation, or original demolition and reconstruction.
2. Prefabricated Panel Houses Built Before the 1980s: Due to their long construction time, these houses have many potential safety hazards, such as material aging and degradation of structural performance, and are priority targets for demolition.
3. Houses Unable to Withstand Natural Disasters: Buildings with seismic resistance capabilities less than 70% of the current standards or houses that are easily damaged in floods may be partially demolished to enhance regional disaster prevention capabilities.
4. Houses Affecting Urban Planning: Residential houses located within the planning scope of major infrastructure construction projects such as subways and viaducts may be demolished to ensure the implementation of the overall urban planning.

II. Handling Methods and Compensation Plans

1. Handling Methods:
   • Due to the high safety risks, Grade D dangerous houses are given priority for demolition and reconstruction or original demolition and reconstruction.
   • For Grade C houses with local hazards, reinforcement and repair can eliminate the risks. If the building is severely aged, has concentrated functional defects, and the residents have a unified will, it may also enter the reconstruction path.
2. Compensation Plans:
   • Monetary Compensation: Not less than 110% of the market price of surrounding commercial houses. For example, the assessed price of Dong'an No.1 Village in Shanghai reached 135,000 yuan per square meter, 15% higher than the second-hand house price in the same area. In Wenzhou, Zhejiang, prefabricated panel houses built before 2000 are compensated at 2,800 yuan per square meter, 16.7% higher than that of brick-concrete houses.
   • Property Rights Exchange: Replace new housing in proportion. For example, residential buildings in Handan are replaced at a ratio of 1:1.1, and homestead houses at a maximum of 1:1.2. If the per capita area is less than 30 square meters, it is made up to the guaranteed area, suitable for people with long-term housing needs.
   • Housing Voucher Resettlement System: Implemented in some areas to provide residents with more choices.

III. Policy Background Starting from 2026, the governance of prefabricated panel houses has been included in the scope of urban renewal and the renovation of dilapidated houses. Through multiple paths such as safety inspections, reinforcement and renovation, original demolition and reconstruction, and expropriation and resettlement, it balances safety needs with residents' interests and avoids a one-size-fits-all approach to relocation.