During a press conference in Beijing on October 17, China’s Minister of Housing and Urban-Rural Development, Ni Hong, announced the government’s plan to initiate the renovation of 1 million housing units through a monetized resettlement approach.
Ni highlighted the urgent need for improvements in urban villages, which often face safety hazards and poor living conditions. He noted that public willingness to renovate is high, particularly in major Chinese cities. A recent survey indicated that there are approximately 1.7 million urban village units in need of renovation across 35 major cities, along with around 500,000 dilapidated properties nationwide.
“This new initiative to renovate 1 million units focuses primarily on projects that are well-prepared and can benefit from increased policy support for earlier implementation,” explained Ni.
He elaborated that the monetized resettlement method will enable citizens to choose housing that fits their needs and preferences, facilitating a smoother transition to their new homes without the need for temporary moves. This approach aims to eliminate safety risks and enhance living environments in urban settings, while also addressing significant changes in the supply and demand dynamics of the real estate market.
The announcement included five main support policies: prioritizing assistance for cities at the prefecture level and above; allowing development and policy-based financial institutions to provide special loans; permitting local governments to issue special bonds; offering tax and fee concessions; and enabling commercial banks to issue loans based on project evaluations.
Ni encouraged local governments to align these efforts with urban renewal plans, emphasizing that by effectively executing preliminary work, they could potentially expand support beyond the initial target of 1 million units.
