China pushes ahead with urban renewal to upgrade city life, unlock growth potential

BEIJING, Oct. 30 (Xinhua) -- Zhang Laiyuan, a longtime resident in a run-down neighborhood in east China, recalled the days of family reunion dinners in the past: "The living room was so small that half of us had to sit on the bed to eat."

In Shiliu New Village, Nanjing, capital of Jiangsu Province, windows once directly faced those of neighboring homes, roofs leaked frequently, and many residents had no indoor toilets.

This residential compound dates back to the 1950s. Roughly 1,500 residents were once packed onto a 16,000-square-meter plot. Nearly half the units spanned less than 35 square meters, with the smallest measuring a mere seven square meters.

The compound has been rebuilt from the ground up, with the first phase of 282 units completed and handed over last year. Every building now features not only standard amenities -- elevators, independent kitchens, bathrooms and balconies -- but also smart security systems, fire safety equipment and barrier-free ramps, along with underground parking, community commercial space, greenery and recreational plazas.

Last Spring Festival, Zhang's daughter, son-in-law and granddaughter came back for the holiday. The whole family sat together in the new living room, with plenty of space to spare.

UPGRADING AGING HOUSING TO MODERN STANDARDS

The transformation of Shiliu New Village mirrors what is taking place across cities in China.

Following decades of fast-paced urbanization progress, aging housing stock now makes up a substantial portion of China's real estate market. In response, experts say the focus of urban development has shifted away from large-scale expansion to improving the quality of existing housing stock.

Many cities are exploring ways to bring aging housing up to modern living standards, including complete demolition and reconstruction as well as micro-renovation. The goal is to systematically address issues ranging from safety risks and outdated layouts to inadequate accessibility for elderly residents.

In an old courtyard in Beijing's Chaoyang District, workers replaced rotting wooden roof structures with durable steel ones using prefabrication techniques. In Shanghai's Hongkou District, an apartment block was rebuilt with steel frames and prefabricated components, allowing residents to stay in their community throughout construction.

The central government has allocated 97 billion yuan (about 14.45 billion U.S. dollars) in its 2026 budget for urban renewal, mainly for renovating old and dilapidated urban housing, and the funding is expected to benefit around eight million households.

Under the national urban renewal plan (2026-2030) released earlier this year, China aims to launch renovations on 115,000 old urban residential compounds, retrofit or install 575,000 residential elevators, and build or upgrade 50,000 hectares of urban green space.

ECOLOGY, INDUSTRY, CONSUMPTION AS NEW PRIORITIES

The Maozhou River in south China's Guangdong Province was once heavily polluted. Following vigorous pollution control and vegetation restoration by local authorities in Shenzhen, the river has been transformed into a leisure belt with six ecological wetlands and 45.6 kilometers of walking trails. Rowing and dragon boat activities have also been introduced.

Zheng Degao, vice president of the China Academy of Urban Planning and Design, said river regulation has gone beyond conventional environmental protection to take on a new meaning -- reshaping urban waterfront spaces to activate the whole city.

According to the Ministry of Housing and Urban-Rural Development, between 2026 and 2030, China will renovate or upgrade 20,000 hectares of urban parkland, add 15,000 mini-sized "pocket parks" and build or upgrade 20,000 kilometers of urban greenways.

Urban renewal also holds huge potential for investment and consumption. China has set a target of renovating 1,500 old streets and factory compounds from 2026 to 2030, bringing in new industries and business models to inject fresh momentum into urban development.

Experts estimate the total urban renewal market will reach 15 trillion to 20 trillion yuan over the 2026-2030 period.

A renewal project in Shanghai's Xuhui District preserves the industrial heritage of a cement plant, an airport and a railway station while creating media and digital and intelligence industry clusters. More than 4,000 companies covering multiple sectors including artificial intelligence have gathered here, generating over 150,000 new jobs.

"Converting old streets and factory sites into cultural and creative districts drives growth in dining, retail and entertainment, while upgraded parks and sports facilities open new consumption scenarios for families, seniors and leisure seekers," said Yan Yuejin, deputy director of the E-house China R&D Institute.

Urban renewal is injecting lasting momentum into high-quality urban development while opening up broad opportunities for the real economy and capital markets, he said.