With the acceleration of urbanization, the transformation of urban villages has become an important task actively promoted by major cities. Recently, the Ministry of Housing and Urban-Rural Development said that megacities are actively and steadily promoting the transformation of urban villages, and adopt three types of methods to implement in stages. After the General Office of the State Council issued the "Guiding Opinions on Actively and Steadily Promoting the Transformation of Urban Villages in Megacities", all localities actively carried out the work of formulating supporting policies, finding out the number of urban villages, and compiling transformation project plans in accordance with the arrangements.
It is understood that the purpose of urban village renovation is to improve the living environment, improve the quality of life of residents, and promote urban renewal and development. In this process, it is necessary to adopt a scientific and reasonable transformation plan, while paying attention to the balance of social benefits and economic benefits.
For different types of urban villages, megacities have adopted different transformation plans. A category of urban villages that qualify will be demolished and newly built, which means that buildings need to be demolished and rebuilt to better plan and build urban spaces. The other type of urban village will carry out regular improvement and improvement, including environmental sanitation, public facilities, traffic conditions and other aspects of improvement and improvement. The third type of urban village is in between, and the transformation method of combining demolition and rehabilitation, that is, the overall transformation and upgrading after the demolition of some buildings to achieve better overall benefits.
In the process of promoting the transformation of urban villages, it is also necessary to consider the constraints and influences of various factors. For example, the limited nature of land resources, insufficient capital investment, residents' interests and other issues need to be properly resolved. Therefore, it is crucial to formulate a scientific and reasonable transformation plan.
At the same time, first-tier cities are actively exploring new models for urban village transformation. Guangzhou has the fastest promotion and the richest policies, planning to promote 127 urban village renovation projects throughout the year and complete the investment target of 200 billion yuan in urban renewal fixed assets. In terms of policies, Guangzhou issued the first local regulation and regulation for the transformation of urban villages in China, the Guangzhou Urban Village Transformation Regulations (Draft for Comments), which clarifies the procedures and norms for the transformation of urban villages and provides a strong legal guarantee for subsequent renovation work.
Beijing has also stepped up the formulation of relevant policies, clarifying that housing resettlement methods are the mainstay, and shortening the off-plan housing resettlement period as much as possible. At the same time, Shanghai has also approved 62 urban village renovation projects, and plans to fully launch and complete urban village renovation projects around the central urban area in the next few years.
In addition to large cities, second- and third-tier cities are also actively promoting the "house ticket" compensation method to promote the de-inventory of the real estate market. Take Jinhua City, for example, which introduced a ticket system with local characteristics in February. Where the village (residence) of the village (residence) that carries out the relocation of houses on collective land within the Wucheng District, the expropriated person may purchase a first-hand newly built commercial residence from the real estate development project participating in the housing ticket resettlement work on his own. The emergence of this compensation method not only relieves the pressure of urban housing inventory, but also helps to promote the healthy development of the real estate market.
Overall, with the continuous advancement of urban village transformation and the gradual implementation of various policies, the future real estate market will show a more stable and healthy development trend. However, in this process, various risks and challenges also need to be taken into account, such as insufficient funds, residents' interests and other issues need to be properly resolved. In general, Minsheng Securities believes that with the gradual implementation of the detailed rules for the transformation of urban villages, more favorable policies such as special debt quotas and innovative compensation schemes may continue to be released, and the overall sales trend is improving. Therefore, for real estate enterprises, actively participating in the transformation of urban villages will become one of the important opportunities for their business development.