Real Estate 2025

CHINA Trends and Developments Contributed by: Zheyuan Jin, Xiang Mao, Lingyue Sun and Yi Wu, Merits & Tree Law Offices

moting the Renovation of Old Urban Residential Neighbourhoods were issued by the General Office of the State Council, outlining China’s strategy to upgrade aging neighbourhoods. The initiative focuses on improving infrastruc - ture, enhancing public services, and promoting energy efficiency while encouraging community participation and green building practices. The policy supports funding through government subsidies and public-private partnerships, aim - ing to create safer, more liveable and sustainable urban environments. This initiative reflects Chi - na’s commitment to inclusive urbanisation and addressing the challenges of aging urban areas. In the wake of the Guiding Opinions, natu - ral resources departments at all levels started to fulfil their responsibilities by strengthening planning and land-use policy support, ensuring effective collaboration in advancing the reno - vation of old residential communities. On 13 June 2024, the General Office of the Ministry of Natural Resources issued the Notice on Further Strengthening Planning and Land-Use Policy Support for the Renovation and Renewal of Old Residential Communities. This notice focuses on enhancing policy support to facilitate the renovation of aging neighbourhoods, includ - ing optimising land-use planning, streamlining approval processes, and encouraging innovative land policies. Transformation of urban villages In 2024, China made significant progress in national and regional legislation for urban village ( chengzhongcun ) transformation and redevel - opment, a key component of its urban renewal strategy. At the national level, the Ministry of Housing and Urban-Rural Development and the Ministry of Finance jointly issued a notice stating that projects in prefecture-level cities with bal - anced funding and mature compensation plans

could be included in the scope of policy sup - port. In 2024, the urban village redevelopment initiative expanded to over 300 cities, with 1,790 projects being implemented. To further stabilise the real estate market in 2025, the Ministry of Housing and Urban-Rural Development will intensify efforts to promote the redevelopment of urban villages and dilapidated housing, advanc - ing monetary compensation for relocation. The plan aims to continue scaling up the redevelop - ment efforts, targeting an additional one million units in urban village and dilapidated housing renovations. In key regions like Guangdong, Zhejiang and Shanghai, local governments introduced tailored regulations to accelerate urban village trans - formation and redevelopment. These included innovative financing mechanisms, public-private partnerships, and incentives for green and smart infrastructure. Comprehensive urban renewal projects In 2024, China’s first-tier cities – Beijing, Shang - hai, Guangzhou and Shenzhen – significantly advanced urban renewal legislation, reflecting their unique priorities and stages of develop - ment. A total of 35 policies were issued, a 1.7- fold increase from 2023, covering urban renewal, urban village redevelopment, old neighbourhood renovations and historical preservation. Key trends emerged, including the maturing of policy frameworks. Beijing, for example, released supporting documents for its Framework Urban Renewal Regulations, including implementation guidelines and streamlined approval processes, providing clear direction for urban renewal pro - jects. Shenzhen and Guangzhou led the way by issuing specialised plans and implementation opinions, focusing on integrated planning, land use and management mechanisms for urban vil -

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