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Urban Renewal '15th Five-Year Plan' Released, Set to Drive Trillions of Yuan in Investment
Source: Xinhua News Agency New Media | May 29, 2026 10:41
Xinhua News Agency New Media | May 29, 2026 10:41
Original Title: Urban Renewal '15th Five-Year Plan' Released, Set to Drive Trillions of Yuan in Investment
Xinhua News Agency, Beijing, May 29 – The Economic Information Daily published an article on May 29 by reporter Liang Qian titled "Urban Renewal '15th Five-Year Plan' Released, Set to Drive Trillions of Yuan in Investment." The article states that cities are important carriers of modernization and key spaces for people's happy lives. On May 28, the State Council issued the "Urban Renewal '15th Five-Year Plan" (hereinafter referred to as the "Plan"), providing a clear "construction blueprint" and "acceptance checklist" for national urban renewal efforts.
According to the Plan, by 2030, significant progress will be made in urban renewal actions, with initial results in the transformation of urban development and construction methods, a more solid foundation for safety development, continuously improved service efficiency, noticeably improved living environments, accelerated transformation of old and new growth drivers, effective protection of cultural heritage, more prominent landscape features, and greatly enhanced governance levels, making cities spaces for high-quality living for the people. By 2035, the urban renewal institutional mechanisms will be more complete, with significant achievements in urban structure optimization, growth driver transformation, quality improvement, green transformation, cultural continuity, and governance efficiency, and the basic completion of innovative, livable, beautiful, resilient, civilized, and smart modern people's cities.
Specifically, the Plan sets quantifiable targets for urban renewal during the '15th Five-Year Plan' period. In terms of housing and living, it will renovate about 500,000 units (rooms) of dilapidated urban housing, start renovation of about 115,000 old urban residential communities, and renovate about 4,000 urban villages. For public spaces, it will renovate and upgrade about 1,500 old neighborhoods and factory areas, newly build and expand 128,000 hectares of sports venues, and renovate and upgrade 20,000 hectares of urban parks and green spaces. For safety and resilience, it will complete 365,000 kilometers of urban underground pipeline network renovation, renovate 50,000 existing emergency shelters, and achieve a digitalization rate of over 95% for basic information on urban and rural housing.
According to estimates from multiple institutions, the total market capacity for urban renewal during the '15th Five-Year Plan' period is expected to reach 15 to 20 trillion yuan. This policy dividend will fully activate related industrial chains, bringing long-term investment opportunities. A research report from CITIC Securities stated that high-quality urban renewal places higher demands on creating high-quality housing, livable urban spaces, and convenient surrounding facilities. Real estate companies with strong product capabilities and a presence in core cities are expected to deeply participate in high-quality urban renewal work. From the perspective of Galaxy Securities, as urban development shifts to the stage of improving the quality of existing stock, sectors related to urban renewal and old residential community renovation, such as construction, planning consulting, inspection and testing, and decoration, will benefit.
Zhang Bo, Dean of the 58.com Research Institute, stated that the release of the Plan marks a new phase of institutionalized, long-term, and market-oriented urban renewal. Urban renewal is transforming from a single physical space renovation to a composite drive of "space + industry + consumption," with profound impacts on the real estate market.
“The release of the Plan marks a new phase of institutionalized, long-term, and market-oriented urban renewal. Urban renewal is transforming from a single physical space renovation to a composite drive of ‘space + industry + consumption,’ with profound impacts on the real estate market.”
Yan Yuejin, Vice President of the Shanghai E-House Real Estate Research Institute, pointed out that urban renewal has entered a period of comprehensive acceleration, injecting lasting momentum into high-quality urban development and bringing broad opportunities for the real economy and capital markets. Yan Yuejin estimates that urban renewal will directly drive the development of upstream and downstream industrial chains such as construction, building materials, engineering machinery, and planning and design, with underground pipeline network renovation alone reaching 5 trillion yuan. The renovation of old residential communities, urban villages, and dilapidated housing will also continue to drive growth in industries such as decoration, home building materials, and elevators.
According to the Plan, it will promote the transformation and upgrading of old neighborhoods and factory areas, low-efficiency industrial parks, and low-efficiency buildings, optimize and upgrade traditional industries, cultivate and strengthen emerging and future industries, develop new quality productive forces according to local conditions, and enhance the innovation vitality of urban industries. It will develop smart construction and cultivate a modern construction industry chain. It will promote the renovation and upgrading of consumption infrastructure, and develop the debut economy, silver economy, ice and snow economy, low-altitude economy, event economy, and experience economy.
Yan Yuejin stated that urban renewal is not simply "demolishing the old and building the new," but activating consumption potential through spatial restructuring. The renovation of old neighborhoods and factory areas into cultural and creative parks and characteristic commercial streets will directly drive the prosperity of industries such as catering, retail, and entertainment. The renovation and upgrading of sports venues and parks and green spaces will create new scenarios for sports consumption, parent-child consumption, silver consumption, and leisure consumption, further expanding the breadth and depth of urban consumption.
Due to the wide scope and large funding needs of urban renewal, the Plan also provides substantial policy support.
In terms of investment and financing, the Plan establishes a sustainable urban construction and operation investment and financing system. It explicitly allows the use of local government special bonds to support eligible urban renewal projects, including as project capital. For projects with controllable risks, commercial sustainability, and eligibility, it allows the use of market-oriented models such as comprehensive development, syndicated loans, and project investment for support. It promotes the issuance of infrastructure real estate investment trusts (REITs) and asset-backed securities for eligible urban renewal projects, and supports eligible urban renewal enterprises in issuing corporate bonds and medium-term notes.
At the same time, following the principle of "who benefits, who contributes," it will fully leverage market mechanisms to build a reasonable cost-sharing mechanism among the government, market, and residents. It will standardize the implementation of new mechanisms for government and social capital cooperation, encouraging private enterprises to actively participate in the construction and operation of urban infrastructure. It will prudently and steadily advance public utility price reforms. It will increase support for revitalizing existing land. For example, it will promote the legal and reasonable conversion of land use and building functions, encourage multi-subject cooperative renovation, and reasonably reduce tax burdens in land integration, replacement, and joint development. It will standardize land supply methods such as long-term leasing, lease-before-sale, and flexible-term supply, and support land transfer with plans.
From "development" to "renewal," from "having or not" to "good or bad," as trillions of yuan in investment steadily lands, new consumption scenarios bloom one after another, and new industrial spaces grow, the comprehensive benefits of urban renewal will continue to be released across multiple dimensions such as economy, society, and ecology, injecting lasting momentum into high-quality development. (End)
Editor: Si Xiaoying
Responsible Editor: Jiao Jian
Source: Read the original article | Published: May 29, 2026