The central government has set the tone, and all old houses that are more than 20 years old will be dealt with in this way from 2024

Demolition, the word that always seems to be closely associated with "getting rich", although this is a slight exaggeration, there is no denying that many examples of demolition have made many families leap into wealth. Throughout the history of demolition, some people may be dissatisfied with the replaced property, and some people may feel that the amount of compensation has not been satisfied, but few people have heard of any demolition households feel that they have suffered a loss. The amount of compensation may be high or low, but the hearts of the vast majority of demolition households are full of satisfaction and joy, and many of them have become tens of millions or even billionaires. Take the demolition of Baishizhou in Shenzhen, for example, where more than 1,800 tens of millions and billionaires were "born", and such wealth accumulation may take a lifetime of effort for ordinary people. Because of this, many people are looking forward to the moment when their houses can be demolished, and such a dream has even become a beautiful dream for them at night.

Looking back on the past 20 years, the mainland's economy has been booming, and urban development has also shown leaps and bounds. In order to meet the pace of rapid development, villages around the city and urban villages in the city have ushered in the fate of demolition. However, the tentacles of demolition are not limited to these areas, and the old houses and neighborhoods in those cities have gradually entered the ranks of demolition and relocation over time.

In fact, since 2008, the mainland has started the demolition and reconstruction of shantytowns and old residential areas. After more than a decade of unremitting efforts, many shantytowns and old houses have been demolished. In particular, in 2015, the mainland implemented the monetization and resettlement policy of shantytown reform, replacing resettlement houses with cash, which greatly promoted the progress of shantytown reform and demolition, making it usher in a peak period. In 2018, the number of shantytown renovation and demolition projects in mainland China reached a staggering 6.26 million units, marking the peak of shantytown renovation and demolition.

However, since 2018, the state has begun to gradually reduce the scale of shantytown renovation projects, and at the same time introduced the old reform policy. This means that many old neighborhoods are no longer demolished, but turned to old ones for renovation. By 2022, the number of shantytown renovation projects has dropped sharply to 1.11 million units, while the number of old residential areas nationwide has reached 52,500, benefiting 8.7601 million residents. It can be seen that the scale of demolition and relocation has been greatly reduced in the past few years, and the focus has shifted to the renovation and transformation of old residential areas.

Why should we replace the demolition and relocation of sheds with the old reform policy? There are two main reasons behind this.

First of all, after years of demolition and relocation work, most of the old houses and shantytowns on the mainland that have potential safety hazards and quality problems have been effectively renovated. The remaining houses that look dilapidated today are not structurally damaging, but they are slightly outdated. Therefore, if the demolition is carried out on a large scale, it is undoubtedly a huge waste of social resources, and secondly, the demolition of shantytowns requires a huge injection of funds, and once these funds pour into the real estate market, they often cause housing prices to soar. This not only increases the pressure on ordinary people to buy houses, but also may have a negative impact on the entire economic environment. The old reform policy, as a more moderate and rational way of transformation, can not only improve people's living environment, but also as a means of property market regulation and control, effectively curbing the excessive growth of housing prices.

However, the plan can't catch up with the changes, since September 2021, housing prices have started to fall mode, the entire real estate industry is in trouble, real estate companies can't sell their houses, and the capital chain is tight, not only can they not continue to auction land and build houses, but even many real estate projects have begun to stop. In this case, various places have begun to rescue the market, but the effect of the property market rescue is not obvious, and the rescue of the market in 2023 has not only not reversed the trend of housing prices, but has allowed housing prices to continue to fall for a year, and the development of the property market has continued to be sluggish. In 2024, all localities have stepped up their efforts to rescue the market, and the Ministry of Housing and Urban-Rural Development has delegated power to local governments, so that local cities have greater power to rescue the market. Starting from this year, the country has launched the "three major projects", and the core of the three major projects is the transformation of urban villages. At present, many cities have prioritized demolition and relocation, for example, 40% of the urban interfaces in Shenzhen are included in the scope of demolition and reconstruction: urban villages, old urban areas, and houses that affect urban development and major industrial development.

In addition, Minister Ni of the Ministry of Housing and Urban-Rural Development clearly pointed out at the press conference on the theme of people's livelihood that the task of stabilizing the market is still very arduous. However, from the perspective of the overall situation of urbanization development in the mainland, there are still more than 30 billion square meters of housing stock in urban areas to be updated and renovated, which shows that the mainland real estate market still has huge development potential and space. To this end, we plan to renovate another 50,000 old neighborhoods within this year, and start building a number of well-equipped communities. In other words, the task of renovating old communities in 2024 is very arduous, not only to transform 50,000 old communities, but also to build a new batch of communities.

The central government has set a new tone, and the old communities that are "more than 20 years old" will all be treated in this way

Old house renovation plan: shantytown renovation and old renovation go hand in hand, rejuvenating the city. With the advancement of urbanization, many old houses that have gone through vicissitudes of life are gradually exposed to the problems of aging facilities and environmental improvement. In response to this challenge, the central government has redefined the tone of the old residential areas that are more than 20 years old: the plan aims to improve the quality of life of residents and inject new vitality into the city's modernization through a combination of shantytown renovation and demolition.

1. In view of the old houses with superior geographical location but in disrepair, the government decided to start the shed renovation and demolition project. We invite experienced developers to join us in creating a comfortable and livable new home for our residents. Demolition is not only an effective means to solve the problem of living in old communities, but also an important measure to promote urban renewal and the healthy development of the real estate market.

2. For those old houses with a relatively young age and intact main structure, it is planned to implement the old renovation project. A large amount of money will be invested to comprehensively upgrade and renovate the public facilities, green environment and parking facilities in the community. While preserving the historical memory of the city, residents can enjoy a higher quality living experience in a familiar environment. The aim is to achieve sustainable urban development and to allow cultural heritage to coexist in harmony with modern life.

Of course, there are various challenges in the process of renovating an old house. For those who want to keep their old home, the renovation is undoubtedly good news, allowing them to enjoy a better living environment while retaining their original home. However, for those investors who had hoped for a fortune from demolition, the renovation may be a disappointment. With the advancement of old reform, those who try to make a profit from the demolition by buying old houses have gradually lost the market.

In general, the renovation plan launched by the central government for old residential areas with houses over 20 years old aims to comprehensively improve the quality of life of residents and promote the modernization of the city through the parallel method of shantytown renovation and demolition. The implementation of this policy not only creates a more livable environment for residents, but also injects new vitality into the sustainable development of the city.