China Launches Housing Reform Plan Targeting 1 Million Urban Renovations

China's recent Central Urban Work Conference, led by President Xi Jinping, emphasized a strategic shift in urban development from rapid expansion to sustainable, quality-focused renewal of existing urban areas. The government plans to renovate one million homes in aging neighborhoods and improve infrastructure, aiming for livable, resilient cities rather than large-scale new construction, reflecting concerns over the property sector's prolonged downturn and housing oversupply. This approach prioritizes people-centered urbanization, integrating historical culture and community needs, as seen in projects like Fuzhou's Cangxia New Town and Shanghai's Ruyili community, which have transformed dilapidated areas into vibrant, livable spaces. Despite the ambitious goals, the conference did not announce immediate policy support, leading to a drop in the Chinese property developers' market index amid investor disappointment. Analysts highlight that China has limited capacity to replicate previous large-scale housing stimuli due to weak demand and economic pressures, signaling a gradual, steady push for urban renewal rather than quick fixes. Overall, China is moving toward high-quality urban reconstruction focused on improving living standards, public participation, and infrastructure safety.