Five-year urban residential renovation plan expected to help stabilize economic growth

The central authorities' ambitious plan to complete government-subsidized renovations in all the country's aging urban residential communities by the end of 2025 is expected to play a key role in stabilizing investment growth, officials said.

According to a guideline unveiled by the State Council on Monday, the country will endeavor to renovate all aging urban residential communities, mostly those built before 2000, by the end of the 14th Five-Year Plan (2021-2025).

There are about 220,000 such communities across the country, which are home to 39 million households, said Vice-Minister of Housing and Urban-Rural Development Huang Yan in a news conference organized by the State Council Information Office on Tuesday.

Since late 2012, government-subsidized housing projects, including shantytown renovation and public rental housing, has played an important role in improving people's livelihoods and stabilizing economic growth, said Liu Shihu, an official with the National Development and Reform Commission.

Guided by funds from Central and local governments, the total investment into these projects has surpassed 10 trillion yuan ($1.4 trillion), he added.

"The renovation of the aging residential communities also will play an effective role in driving investment," he said.

Aside from direct investment into the renovation, the project is expected to boost the development of both upstream and downstream industries. With the improvement of the living environment in their communities, residents will be more proactive in increasing their spending on interior decoration and home appliances, he continued.

Per the guideline, the renovation will be subsidized by the Central government, and residents and companies involved also will contribute their share.

On Friday, China Development Bank and China Construction Bank signed cooperation agreements on renovating aging residential communities with six provincial regions, including Northeast China's Jilin and East China's Shandong provinces, and eight cities in other regions.

The two banks will provide 436 billion yuan in loan to support market forces in their participation of the renovation in these regions and cities, according to the ministry.

According to the guideline, 39,000 of the communities will be renovated this year, benefiting about 7 million households.