Recent headlines have attracted widespread attention, from the Central Committee of the Communist Party of China and the State Council issuing the "Opinions on Promoting the Development and Growth of the Private Economy" to the State Council's deliberation and adoption of the "Guiding Opinions on Actively and Steadily Promoting the Transformation of Urban Villages in Megacities", which have affected all aspects of the domestic economy and urban development. This is not only a new starting point for the private economy, but also marks a new chapter in the transformation of urban villages. This article will explore the motivation and impact behind this new policy, and how to better promote the transformation of urban villages and promote high-quality urban development.
First, let's review the background to this new policy.
According to the 2021 Urban Construction Statistical Yearbook released in October 2022, there are 8 megacities and 11 megacities in the country, and the common characteristics of these 19 cities are high energy levels, large population inflows, and large economic aggregates. Therefore, this urban village transformation specifically delineates these cities, which means that these cities have an incremental population and a continuous demand for housing. This is also different from the past, where the transformation of urban villages was more concentrated in third- and fourth-tier cities, and this time concentrated in large cities with high energy levels and population inflow. This precise urban selection reflects the government's strategic consideration of urban development.
The purpose of urban village renovation is not only to improve people's livelihood, but also to expand domestic demand and promote high-quality urban development. In terms of improving people's livelihood, the renovation of urban villages aims to improve the quality of the living environment and create better living conditions. For example, a large number of new citizens and young people come to work in Shenzhen every year, and the transformation of urban villages can provide small-house, high-quality affordable rental housing and alleviate housing difficulties. At the same time, during the renovation process, the structure of the building will be reinforced to improve infrastructure such as fire safety, and enhance the sense of safety and happiness of residents.
In terms of expanding domestic demand, the transformation of urban villages will bring huge investment opportunities.
Each city plans to promote a large number of urban village renovation projects, and the annual investment will reach a huge amount. This will directly drive the development of related industries such as construction and home appliances, and will also increase some housing demand, which is also a positive factor for developers. However, unlike the previous shantytown reform, the transformation of urban villages will be carried out in stages, and the demand for housing purchase and rental will not be released in large quantities, so the impact will be relatively limited.
In addition, urban village renovation can also help solve the problem of inefficient use of urban land. With the rapid advancement of urbanization, urban villages have become a special phenomenon, and what needs to be changed in the later stage is the problem of inefficient use of these lands.
For example, the renovation project in Pazhou Village, Haizhu District, Guangzhou, solved problems such as irregular land use and imperfect infrastructure, and promoted the development of the local economy. This is also the only way to transform urban villages to promote the high-quality development of the city.
In order to better promote the transformation of urban villages, the government has proposed a series of support measures. First of all, the government will actively innovate the transformation model, which means that local governments need to find more flexible and efficient ways to promote the transformation of old cities. For example, some places have adopted the model of separating land from land storage to reduce the financial pressure of market entities and reduce the risk of project stagnation.
Secondly, the government encourages and supports the participation of private capital, recognizing that private housing enterprises have unique advantages and roles in the transformation of old cities. This provides more opportunities for private housing enterprises to participate in urban village renovation projects through agency construction and urban renewal funds.
To sum up, the transformation of urban villages is not only to improve people's livelihood, but also to expand domestic demand and promote high-quality urban development. The government has taken a series of support measures to better promote the transformation of urban villages. This will bring new impetus to the urbanization process of the continent and promote more balanced and sustainable urban development.