Demolition: A Dream Carnival of Fortune?
Demolition, the legendary mysterious door to endless riches. While this may be a bit of an exaggeration, it is undeniable that for many of the evictionists, demolition is a coveted feast of wealth.
Looking back at the past demolition cases, some people are happy and some are worried. Some people sigh that the new house they replaced is not as good as expected, and some people are dissatisfied with the amount of compensation. However, it is almost unheard of any of the evicted households losing money as a result of the demolition. This may be the charm of demolition.
The compensation for demolition may vary, but the vast majority of the demolition households are satisfied with the results, and some have even gained tens or even hundreds of millions of dollars in wealth. The case of the demolition in Baishizhou, Shenzhen, is the best proof of this, from which more than 1,800 multimillionaires and billionaires were born, and such wealth cannot be accumulated by ordinary people in a lifetime.
Because of this, many people have a thirst for wealth and hope that their houses will be the object of demolition. This kind of coveted scene has even become their dream. Perhaps one day, their dreams will come true, and the door to endless wealth will open for them.
Over the past 20 years, China's economy has been like a high-speed train, and has achieved rapid development that has attracted worldwide attention. The face of the city is changing with each passing day, and a new chapter is being written every day. However, this rapid development has also led to the demolition of villages around the city, and the disappearance of urban villages one by one.
Time flies, and some old communities and old houses cannot escape the fate of demolition. With the growth of the real estate industry, China's housing resources have gradually become excessive, and many cities no longer need large-scale demolition and reconstruction.
It is worth noting that most of the old communities with quality problems in the city have been demolished, and although the remaining old communities are old, their quality can still meet the needs of residents. If large-scale demolition continues, it will cause a serious waste of resources, which is contrary to the original purpose of urban development.
What cannot be ignored is that the demolition has had a fueling effect on housing prices. Demolition funds flowed into the real estate sector in large quantities, which in turn continued to drive housing prices**. In the face of these problems, the state has been aware of these problems, and from 2020 onwards, it has fully implemented the renovation and renovation plan of old residential areas, replacing demolition with old ones.
This initiative aims to improve the quality of life of residents through the renovation and renovation of old neighborhoods, while avoiding waste of resources and excessive housing prices**. In this process, we not only pay attention to economic development, but also pay more attention to the quality of life of residents, and strive to achieve a win-win situation between urban development and residents' well-being.
In 2020, the renovation and renovation project of the old community was in full swing across the country. From then on, until 2024, the renovation of old neighborhoods is being carried out in an intense and orderly manner across the country. Many neighborhoods have been renovated, and the living environment of residents has been improved like never before. According to the plan of the Ministry of Housing and Urban-Rural Development, in the next five years, the state will carry out a thorough renovation and upgrading of the residential areas built before 2000.
So, how many old communities will usher in the dawn of renovation? Statistics show that about 200,000 old communities nationwide are included in this plan, which means that an average of 40,000 communities need to be renovated every year. This renovation is not only a superficial repair, but a comprehensive and in-depth transformation. This includes, but is not limited to, upgrading wiring lines, installing heating in some communities in the north, adding parking spaces, introducing quality property management, and adding community medical facilities.
It is foreseeable that after such renovation, the living environment and living comfort of the old community will be greatly improved. However, this does not mean that the demolition of the old neighborhood stops. In fact, although the current reform policy is very much in line with the development trend of the real estate industry, there are still some old communities that will face the fate of demolition.
The Ministry of Housing and Urban-Rural Development recently issued the Notice on Preventing Large-scale Demolition and Large-scale Construction in the Implementation of Urban Renewal Actions, which stipulates that, in principle, the demolition area of an urban renewal project or area shall not exceed 20% of the total construction area of the current situation. In other words, if a 10-square-kilometer old town is demolished, the demolition area must not exceed 2 square kilometers, while the remaining 8 square kilometers will be renovated. This regulation ensures that demolitions are not overrun, and also provides clearer guidance for the renovation of old neighborhoods.
In the process of urbanization, some residential communities will inevitably encounter quality problems, and even affect urban planning. Therefore, the demolition and reconstruction of a small number of old communities is not only to solve the housing problem of residents, but also to promote the healthy development of the city. Such measures help to improve the overall image of the city while maintaining the stability of most residential complexes, while creating a more livable environment for residents. Demolition and renovation is also a powerful implementation of urban planning to ensure the sustainable development of the city. Therefore, from 2024, demolition and relocation will be restarted, and under the new regulations, from next year, these three types of houses will be included in the demolition list, and all of them will be disposed of according to the "new regulations".
Category 1: Old Communities - Hidden Dangers of Quality and Safety The core purpose of these communities, whether they choose to renovate or renovate or demolish sheds, is always to solve people's housing problems and improve living conditions. For those old communities that really have quality and safety problems, demolition and reconstruction is an inevitable choice in the future, because most of them do not meet the conditions of old reform. Remember, renovation is not a "one-size-fits-all" approach, and only communities that meet the age requirements and meet the conditions for renovation can be renovated. Therefore, there is no need to worry too much about the quality of housing in the community. Whether it is the old reform or the shed reform, it is a real policy to benefit the people.
Second: Old Houses in Cities – Challenges for Planning and Development Urban planning is not eternal, it evolves over time. This means that some of the city's buildings in the past may no longer be able to meet the current planning needs. During the construction of a city, demolition and relocation are sometimes unavoidable. For example, when a subway, school, station, or road widening is built, the surrounding residential areas may affect the construction of the project. Especially in the old city, many old neighborhoods may be hindering the development of the city due to the outdated planning of the past. Therefore, in order to ensure the smooth progress of the project, these old communities are often selected to be demolished. For example, when the subway is being built in the old town, the houses near the subway station often need to be demolished.
The third category: old houses in the core area of the city - the competition for scarce resources These old houses located in the core area of the city have become scarce resources in the city because of the superiority of the location. As the city progresses and expands, such locations will become increasingly scarce, attracting the attention of many developers. For developers, they prefer to pay for the demolition of these old neighborhoods themselves, because the newly built commercial houses in these areas are not expensive and are very popular. Therefore, the probability of such old houses located in the core area of the city is quite high in the future. Of course, the premise of this kind of demolition is that the developer can profit from it, and it is more based on the trade-off between cost and benefit.
Summary: Future Demolition and Property Selection. Although the probability of demolition may not be as great as in the past, this does not mean that owners and investors who want to demolish do not have opportunities. This also provides some valuable lessons for future buyers: the location is just as important as the quality of the house. As long as the location is superior, even if the quality is slightly worse, the house is still of high value. Therefore, when choosing a property, buyers should have at least one location and quality of the house, and of course a combination of both is preferable.