Demolition of Prefabricated Panel Houses in Shanghai

The demolition of prefabricated panel houses in Shanghai is not a “blanket demolition” but a classified approach based on the actual condition of the houses, with safety as the core focus for refined renovation.

I. Policy Background and Renovation Priorities

According to the National Special Plan for the Renovation of Old Residential Communities (2025-2030) issued by the Ministry of Housing and Urban-Rural Development in 2025, prefabricated panel buildings, due to issues such as weak component connections, poor earthquake resistance, and inadequate thermal insulation, have been identified as key targets for the renovation of dilapidated housing in major cities across the country. As one of these major cities, Shanghai is required to substantially complete the renovation or demolition of such buildings by 2030.

II. Classified Disposal Methods

Shanghai adheres to the principle of “one building, one policy” and classifies prefabricated panel houses into four categories for disposal:

1. Reinforcement and Retention: For buildings with sound structural safety and good maintenance, their service life is extended through repair and reinforcement.
2. Comprehensive Renovation: For buildings with partial aging issues (e.g., aging pipelines, lack of elevators), functional upgrades are carried out.
3. Partial Demolition and Reconstruction: For buildings with severe structural damage in some parts but no need for overall demolition, partial reconstruction is implemented.
4. Overall Demolition and Reconstruction: Only for buildings that meet the Grade D dilapidated housing standard (damaged load-bearing components and significantly reduced structural safety), demolition and reconstruction are, in principle, carried out. According to statistics, only about 25%-30% of prefabricated panel buildings require overall demolition, with the majority being renovatable through technical means.

III. Demolition Management Process

According to the Regulations on the Management of Demolition Projects for Existing Buildings and Structures in Shanghai (HFGF [2025] No. 4), demolition projects must strictly follow the project filing procedures:

• The construction unit shall file the project with the housing management department of the district where the project is located after the project approval document is issued and before contracting.
• The municipal housing management department is responsible for comprehensive supervision, while the district housing management departments are responsible for project filing, commencement and completion filing, and daily supervision.

IV. Resettlement Options

For buildings requiring demolition and reconstruction, residents can choose:

• Monetary Compensation: The government provides compensation based on market assessment prices.
• Local Relocation: Residents are provided with newly built housing at the original site or nearby areas.

V. The Key Role of Safety Appraisal

In the 2026 survey of prefabricated panel houses in Shanghai, housing safety appraisal serves as the core basis:

• For buildings that meet the Grade C dilapidated housing standard, measures such as repair and reinforcement are adopted.
• For buildings that meet the Grade D standard, demolition and reconstruction are, in principle, carried out.

This classified management mechanism avoids a “one-size-fits-all” approach to demolition, balancing renovation needs with residents' rights and interests.