National Ministry of Housing and Urban-Rural Development: Prefabricated Panel Houses
The policy of the National Ministry of Housing and Urban-Rural Development on prefabricated panel houses is to implement classified disposal, avoiding a one-size-fits-all approach to demolition, and instead promoting governance and renovation based on the results of housing safety appraisals.
I. Core Logic of the Policy: Using Appraisal Results as the Basis for Governance
According to the Standard for Appraisal of Dangerous Buildings (JGJ 125-2016), prefabricated panel houses are classified into four grades: A (safe), B (basically safe), C (partially dilapidated), and D (completely dilapidated). The governance methods strictly correspond to these grades:
- A/B-grade houses: Focus on repair and maintenance, addressing issues such as waterproofing, aging pipelines, and lack of barrier-free facilities. Some projects may include the installation of elevators to enhance living quality.
- C-grade houses: Priority is given to eliminating safety hazards through repair and reinforcement (e.g., reinforcing load-bearing walls, replacing rusted components). If local structural damage is severe, the "original demolition and reconstruction" approach may be adopted, rebuilding housing that meets modern standards on the original site.
- D-grade houses: Due to the failure of load-bearing structures and overall danger, they must be demolished and rebuilt. During reconstruction, it is necessary to simultaneously plan for low- and medium-priced rental housing to ensure the housing needs of low-income groups are met.
II. Controlling Demolition Scale and Avoiding "Extensive Demolition and Construction"
In January 2026, the Ministry of Natural Resources and the Ministry of Housing and Urban-Rural Development jointly issued a notice, clarifying that the demolished floor area within urban renewal units shall not exceed 20% of the current total floor area, and the demolition-to-construction ratio (the ratio of newly built floor area to demolished floor area) shall not exceed 2. This regulation aims to balance renewal efficiency with social costs, preventing resource waste, cultural disruption, or housing price fluctuations caused by excessive demolition. For example, if the total floor area of prefabricated panel houses in a certain area is 100,000 square meters, the upper limit for demolished area is 20,000 square meters, and the newly built area shall not exceed 40,000 square meters.
III. Classified Implementation Paths and Supporting Measures
The policy emphasizes promoting renewal in a "precise" and "orderly" manner:
- Technical Support: Rely on professional institutions to conduct housing safety appraisals, ensuring that the grading results are scientifically reliable.
- Financial Support: For the renovation of C/D-grade dilapidated houses, the central and local governments provide special subsidies, while also encouraging social capital to participate in reconstruction projects.
- Cultural Protection: During demolition and reconstruction, it is required to preserve building components or spatial layouts with historical value, avoiding a "uniform look" across cities.
- Resident Participation: Solicit resident opinions through public hearings and announcements to ensure that the renovation plans meet actual needs.
In addition, the Ministry of Housing and Urban-Rural Development has issued the Notice on Preventing Extensive Demolition and Construction in the Implementation of Urban Renewal Actions (Draft for Comments), further emphasizing that urban renewal needs to balance social equity and cultural heritage, providing a policy framework for the governance of prefabricated panel houses.
