Summary of Key Points
This article focuses on the challenges and solutions for renovating old, dilapidated, and small residential buildings (referred to as "old, broken, and small" housing) in Shanghai. There is a large number of such buildings in Shanghai, which face significant issues, such as the aging of structures made of thin beams and thin plates. While the government-led renovation programs have been effective for larger-scale projects, individual renovations only provide temporary solutions and cannot keep up with the rapid deterioration of these properties. The Wenzhou Lao Hong Yuan community has adopted a different approach, where residents pool their funds to demolish and rebuild their homes, thereby solving both housing problems and increasing property values. The article suggests that Shanghai should adopt a similar model, encouraging residents to take ownership of the renovation process, leveraging the location's advantages and government support to benefit residents sooner and reduce financial burdens on the city.
I. Old, Broken, and Small Housing in Shanghai: A Urgent Renovation Need
Shanghai has a large number of old, broken, and small housing units. Residential buildings constructed 2000 years ago account for 40%-45% of the total urban housing stock (about 420-460 million square meters), with a higher proportion in central areas like Huangpu and Jing'an (60%-75%). Additionally, other districts like Caoyang and Pengpu have another 250 million square meters of such buildings.
These old buildings have several prominent problems:
- Thin-beam and thin-plate housing: Specific to Shanghai, these structures from the 1960s and 1970s were designed to save materials and space. They feature thin beams and plates, shallow foundations, and shared kitchens and bathrooms among three households. As a result, they are prone to leaks and electrical failures, with poor sound and moisture insulation, posing significant safety risks.
- Brick-and-concrete housing: Built in the 1980s, these buildings are designed for a lifespan of 50 years according to national standards, and now they have reached the point where renovation is necessary.
Shanghai has entered a peak period of renovation needs. However, at the current rate of 10 million square meters per year, it will take ten to twenty years to renovate all the old buildings, which is far too slow compared to the pace of their deterioration.
II. Existing Renovation Models
There are three main renovation models in Shanghai:
- Large-scale comprehensive renovations: These have been very successful. For example, the Neijiang large-panel housing project introduced a diversified resettlement approach, with 100% of agreements being finalized on the first day of signing. After the reconstruction of Pengpu Xincun Pengyi Community, residents moved into high-rise apartments with private units.
- Individual "optimization" renovations: These attempts to improve the appearance of buildings (such as adding elevators) are only superficial and do not address the underlying structural issues. For instance, installing elevators can be more difficult than demolishing and rebuilding the entire building, and such repairs often fail to solve the structural problems, potentially leading to waste of resources.
Government-led renovations need to prioritize tasks based on urgency, but with a backlog of historical issues, residents cannot wait. By the time the old buildings from the 1980s are renovated, those from the 1990s will require attention again.
III. The Wenzhou Model: A Practical Example of Resident-Initiated Renovations
The Lao Hong Yuan community in Yueqing, Wenzhou, provides a practical example. Fifty-two residents each contributed 200,000 yuan, raising a total of 10.1 million yuan for demolition, design, construction, and elevator installation. The results were impressive: stairs were replaced by elevators, two-bedroom units were converted into three-bedroom units, and parking spaces were added, all at a cost of only 1,821 yuan per square meter. This "self-funded + rebuild" model has several advantages:
- Flexibility: Residents can decide whether to renovate without waiting for government approval.
- Cost savings: Residents bear part of the costs, reducing the financial burden on the government.
- Customization: Residents are involved in the design and construction process, ensuring that the renovations meet their specific needs.
- Value increase: Renovated homes appreciate in value, motivating residents to invest.
IV. Shanghai's Potential for Resident-Initiated Renovations
Shanghai has better conditions than Wenzhou for promoting such initiatives:
- Location advantages: Many old buildings are located in prime central areas, offering significant potential for property value increases after renovation, which motivates residents to invest.
- Policy support: The national "15th Five-Year Plan for Urban Renewal" explicitly supports the self-renovation of old housing. Zhejiang and Guangdong have already issued regulations that facilitate such initiatives (for example, allowing property owners to apply for renovation projects).
- Feasibility: Individual renovations are prioritized, and larger communities can be renovated in phases.
This approach allows residents to benefit sooner, reduces the government's financial burden, and accelerates the renovation process, addressing the issue of residents waiting too long for improvements.
V. A Combined Approach: Resident-Initiated Renovations + Government Support
The solution to Shanghai's old housing problem requires a collaborative effort between residents and the government:
- For individual buildings, prioritize resident-led renovations over superficial improvements.
- The government should provide necessary services (such as simplified approval processes and policy guidance) rather than taking over all the work.
- Market forces (including private capital) should be utilized to make the renovation process more efficient.
The Wenzhou model has proven that resident-initiated renovations are feasible. With the right foundation and policies in place, Shanghai can find a new approach to solving this issue. The core idea is clear: Renovation efforts must involve residents, allowing them to take ownership of their homes, which not only solves practical problems but also stimulates market vitality. For Shanghai, this could be a crucial step in overcoming the challenges associated with old housing renovation.