EconoScope | China invests over $364 bln in urban renewal

(ECNS) -- China has invested 2.6 trillion yuan (about $364.58 billion) in over 66,000 projects designed to renovate urban infrastructure, according to recent data from the Ministry of Housing and Urban-Rural Development (MOHURD).

China's urban development stands at a critical turning point, with the focus transitioning from urban expansion to the renewal of existing housing.

In line with this change, the Housing and Urban-Rural Development Bureaus in 17 cities of Hubei Province have been renamed as Housing and Urban Renewal Bureaus. Cities such as Shenzhen, Guangzhou, and Jinan have also established specialized urban renewal agencies.

These renamed bureaus are now prioritizing the adjustment of housing supply structures and urban renewal over their traditional roles of approving construction projects and overseeing the real estate market.

Public demand for housing in China has evolved from a focus on quantity to a desire for higher quality. This shift requires a move away from the previous model of large-scale demolition and construction toward renovation and renewal within existing urban areas.

To meet the demand, China's Ministry of Finance and the MOHURD jointly announced in April that the central government would financially support urban renewal pilot projects in select cities. The first batch of 15 cities includes Shijiazhuang, Taiyuan, Shenyang, Shanghai, and Nanjing.

Across China, more than 400 cities have established leading groups for urban renewal. They lead thousands of renewal projects including the improvement of 15,000 constructions in healthcare, sport, education and culture.

Liu Hongyu, a professor in real estate and construction at Tsinghua University, emphasized that urban renewal aims to improve the use of existing land and housing. He noted that this has become a key focus in urban construction during China's high-quality development.

Liu suggests that the next stage of urban renewal should focus on updating laws and policies to ensure that the improvement is law-based. He also recommends coordinated support in finance and other areas to boost the efficiency, fairness, and effectiveness of urban renewal projects.