Vice Premier He Lifeng calls for greater support for urban renewal
Local governments must step up their support for urban renewal projects this year.
- China’s trade and econ czar, Vice Premier He Lifeng, delivered that message on Monday during the inaugural national videoconference on urban renewal work (People’s Daily).
Some context: A key pillar of the 14th Five-Year Plan (2021-2025), urban renewal involves improving living conditions in China’s aging and densely populated urban areas.
- These projects encompass a wide range of infrastructure improvements, from upgrading old pipelines and road networks to refurbishing old residential buildings and urban villages.
ICYDK: In 2024, investment in urban renewal projects amounted to RMB 2.9 trillion – equivalent to over a quarter of total real estate sector investment during the same period (Xinhua).
- That’s up from RMB 2.6 trillion in 2023.
Investment in the scheme is set to gain further momentum this year:
- Earlier this month, the State Council highlighted urban renewal as an “important lever for expanding domestic demand” and promised increased funding support.
- On Tuesday, the housing ministry (MoHURD) said over 410 cities have established dedicated government leading groups to promote urban renewal.
Get smart: With the traditional growth model of large-scale, speculation-driven real estate development a thing of the past, authorities are promoting urban renewal as an alternative growth engine to stimulate construction activities and job creation.
Get smarter: Urban renewal projects won't compensate for the downturn in commercial property development. Still, they mark a crucial step in China’s attempt to shift from quantity-driven to quality-focused growth.