China is experimenting with a model where residents can renovate their own apartments.

Faced with financial pressure and adjustments in the real estate market, many major cities in China, such as Shenzhen, Beijing, and Guangzhou, are experimenting with a new approach to urban renewal: mobilizing resources from the people themselves, allowing citizens to contribute capital, participate in design ideas, and take a more proactive role in their living spaces.

When citizens are the main actors in urban regeneration.

For decades, the familiar scenario for urban redevelopment projects in China has been: the government plans, real estate companies invest, residents receive compensation, and then relocate. This large-scale demolition and reconstruction approach has turned many people into millionaires overnight and created glamorous skyscraper cities. However, as the real estate market cools, the old formula begins to show cracks. Many projects fall behind schedule due to disagreements between developers and residents, or because the new plans don't align with the actual needs of the people.

In this context, the socialization approach with the "resident-led renovation" model is bringing a breath of fresh air to dilapidated old apartment buildings. Most recently, in Shenzhen, the technology hub of southern China, an apartment building over 40 years old officially launched its first renovation project, undertaken by the homeowners themselves with the guidance and legal support of the local government, instead of relying entirely on large real estate corporations.

This small-scale project involves 10 households, all former employees living in the old apartment complex of a public kindergarten built in 1979. With a total floor area of ​​approximately 870 square meters, the building has long been in serious disrepair, with peeling walls, tangled electrical wiring, and frequent flooding during heavy rains. Instead of passively waiting for compensation packages, these 10 households unanimously agreed to meet and agree on a contribution amount, discuss necessary repairs with the advice of a professional unit, and directly select a suitable construction contractor.

Apartment complex in Shenzhen, built in 1979. Photo: The Paper.

The solution to the economic and social problems.

The essence of this model is to enhance the role and initiative of the people while reducing pressure on the state budget. Although the specific cost of the Shenzhen project has not been disclosed, based on a similar project in Guangzhou for a building with an area of ​​over 1,700 square meters, the total reconstruction cost was approximately 8 million yuan (equivalent to 1.2 million USD). On average, each household paid about 300,000 yuan (over 1 billion VND) to gain a completely new, modern, and safer living space on the land they have lived on for many years.

Analyzing this shift, Mr. Tran Kiet, Director of the Center for Housing and Urban-Rural Development at Shanghai Jiao Tong University, commented: "The traditional real estate development model, characterized by large-scale demolition, large-scale construction, and relocating residents from old low-rise buildings to construct high-end apartments for sale at exorbitant prices, is no longer suitable for most long-established residential areas in the current frozen market."

According to Mr. Tran, relying solely on public resources makes it difficult to achieve widespread coverage: "If we only rely on the government budget, at most we can only support a few model projects for buildings that are severely dilapidated and dangerous, but we cannot replicate it on a large scale."

Compared to traditional relocation methods, the model that promotes resident initiative offers many harmonious benefits. This method respects the wishes of the people, minimizes prolonged disputes, optimizes costs, and more clearly defines citizens' responsibilities regarding their property. In the Shenzhen building, although the floor area remains the same as the master plan, the new structure has integrated elevators to serve the elderly, the ground floor has been raised to prevent flooding, and the ventilation and lighting systems have been comprehensively improved.

A floor plan of the building after reconstruction. Photo: The Paper.

Challenges in scaling up

Despite offering many positive signals and being incorporated into China's urban renewal strategy, this "people-led, people-responsible" model still faces practical obstacles. The biggest challenge lies in scale. The building in Shenzhen benefited from its small size, with only 10 households. But for large residential areas with hundreds or thousands of households, achieving absolute consensus is very difficult. Furthermore, many disadvantaged families or elderly people living alone lack the financial resources to participate in the project.

To solve this thorny problem, urban experts believe a more flexible market mechanism is needed. Mr. Tran Kiet proposed the following solution: "The key to replicating self-managed renovation projects is establishing an effective transfer mechanism. Accordingly, homeowners who do not need or are unable to participate in renovations can be encouraged to transfer their properties through a suitable mechanism."

Specifically, the government could facilitate the purchase of apartments from non-participating residents at market price by urban development funds or local businesses, or assist them in relocating to more suitable resettlement areas. This would then allow for the harmonious allocation of vacant land to remaining residents, optimizing living space without disrupting the overall planning or increasing the overall land use ratio of the entire building.

Pilot projects in Shenzhen, Guangzhou, and Beijing are opening up a new approach to the problem of renovating old apartment buildings in China. From being entirely dependent on external resources, residents are now actively participating in the process of building their homes. This offers a useful perspective on the socialization and diversification of resources in urban renovation and modernization, a topic of interest for many major Asian cities.

Source: sixthtone.com

Source: https://phunuvietnam.vn/trung-quoc-thu-nghiem-mo-hinh-dan-tu-sua-chung-cu-238260602155531633.htm