Prefabricated Panel Structure Housing Policy
The policies for prefabricated panel structure housing mainly involve renovation, demolition, and compensation, as detailed below:
I. Renovation Policies Since 2022, China has implemented renovation policies focusing on repairing and upgrading prefabricated panel houses, with demolition reserved only for buildings that meet hazardous housing standards. The '15th Five-Year Plan for Urban Renewal' issued by the State Council explicitly proposes to renovate over 500,000 non-complete housing units, including prefabricated panel houses, on state-owned land within built-up areas of cities and county towns, with a focus on eliminating safety hazards in documented D-grade hazardous housing. The policy supports self-initiated renovations and original-site reconstruction of old housing, and explores sustainable operation models, such as introducing social capital to participate in renovations, thereby improving living quality while reducing financial pressure.
II. Demolition Policies
Priority Demolition Scope: The new policy in 2025 precisely targets two types of high-risk buildings:
- D-grade hazardous housing: Buildings whose main structures have been damaged to a hazardous state as certified by professional institutions, such as those with foundation settlement exceeding 5 cm, cracks in load-bearing walls wider than 1 mm, or seismic resistance levels below 70% of current standards.
- Prefabricated panel houses built before the 1980s: Due to low construction standards and material aging, these buildings are vulnerable to natural disasters (e.g., those with seismic resistance below 70% of current standards or those prone to damage in floods) and those affecting urban planning (e.g., residential buildings within the planning scope of major infrastructure projects such as subways and viaducts).
Demolition Requirements: The 'Notice on Preventing Large-Scale Demolition, Construction, and Relocation in the Implementation of Urban Renewal Actions (Draft for Comment)' issued by the Ministry of Housing and Urban-Rural Development emphasizes the need to strictly control large-scale demolition, additional construction, and relocation during urban renewal, preventing excessive real estate development and promoting a shift from extensive outward expansion to intensive inward development. For example, the demolition ratio must comply with the principle of 'retention, renovation, and demolition,' with priority given to preserving the historical value of buildings through repairs and reinforcements.
III. Compensation Policies For the demolition of prefabricated panel houses, the government provides diversified compensation methods:
- Monetary Compensation: The compensation standard is not less than 110% of the market price of surrounding commercial housing. For example, the assessed price in Dong'an First Village, Shanghai, reached 135,000 yuan/㎡, 15% higher than the second-hand housing price in the same area; in Wenzhou, Zhejiang, prefabricated panel houses built before 2000 are compensated at 2,800 yuan/㎡, 16.7% higher than brick-concrete houses.
- Property Rights Exchange: In places like Handan, residential buildings are exchanged at a ratio of 1:1.1, with a maximum of 1:1.2 for houses on homestead land, and a guaranteed minimum living area of 30㎡ per person is provided if it is insufficient.
- Housing Voucher Settlement: By issuing housing vouchers, demolished households are allowed to purchase commercial housing in designated areas, balancing regional housing supply and demand.
The policy ensures the protection of residents' rights and interests through differentiated compensation mechanisms while guiding the optimal layout of urban space.
