Can Prefabricated Panel Houses Be Demolished?

Prefabricated panel houses can be demolished, but not all of them are to be demolished. Instead, different treatment methods are adopted according to specific circumstances.

According to the '15th Five-Year Plan for Urban Renewal' issued by the State Council, it is clearly proposed to renovate more than 500,000 non-complete housing units, including C- and D-grade dangerous housing and prefabricated panel houses in cities, and steadily promote the renovation of prefabricated panel houses and seismic reinforcement of houses in earthquake-prone areas. The new national policy introduced in 2025 brings renovation opportunities for prefabricated panel houses, among which three types of houses are prioritized for demolition:

• D-grade dilapidated houses: A D-grade dilapidated house means that the overall structure of the house has been severely damaged, cannot meet the requirements for safe living, and poses a great safety hazard. Such prefabricated panel houses must be demolished to safeguard the lives and property of residents.
• Prefabricated panel houses built before the 1980s: Due to their long construction time, problems such as aging of building materials and degradation of structural performance are prominent in these houses. It is difficult to meet modern living safety standards through simple repair and reinforcement, so they are prioritized for demolition.
• Houses affecting urban planning: When the location of a prefabricated panel house conflicts with the overall urban planning layout, for example, obstructing the widening of urban roads or the construction of public facilities, in order to achieve reasonable urban development and functional layout optimization, such houses will also be prioritized for demolition.

For prefabricated panel houses identified as Grade A or B with no major problems in the main structure, the most practical solution is the renovation of old residential areas, improving the living environment and enhancing supporting facilities to upgrade the living quality. For those identified as Grade C dilapidated houses but still having room for repair, they will enter the path of repair and reinforcement, with structural reinforcement carried out to eliminate safety hazards. Expropriation and demolition depend on whether there are projects in the area, such as the need for land for road construction, subway construction, or public facility construction, or whether the area is included in a clear demolition and reconstruction project.