China Unveils '15th Five-Year Plan' for Housing: Higher Standards, Urban Renewal, and New Real Estate Models
The State Council Information Office announced comprehensive plans for the '15th Five-Year Plan' period, focusing on constructing higher-standard 'Good Houses,' implementing new real estate development models to prevent risks, and launching massive urban renewal projects including pipeline upgrades and community renovations.
On September 18, 2026, the State Council Information Office held a press conference detailing strategic plans for housing and urban-rural development during the upcoming '15th Five-Year Plan' period. The announcements highlight a shift towards higher living standards, risk prevention in the real estate sector, and extensive infrastructure upgrades.
Raising Standards for 'Good Houses'
A central component of the new plan is the construction of "Good Houses" with significantly improved specifications. According to the latest "Residential Project Specifications," several key metrics have been updated to enhance safety and comfort:
- Floor Height: The standard floor height has been raised from 2.8 meters to 3 meters.
- Elevator Requirements: The mandate for installing elevators now applies to buildings of 4 stories or above, lowered from the previous requirement of 7 stories or above.
- Safety Guardrails: To ensure child safety, guardrail heights at balconies and other open edges must be no less than 1.2 meters.
These changes reflect a broader effort to improve living conditions. During the preceding "14th Five-Year Plan" period, over 11 million affordable housing and resettlement units were built, benefiting more than 30 million people. Additionally, dilapidated houses for over 1.78 million rural low-income households were renovated.
New Real Estate Development Model
The government outlined a new model for real estate development that focuses on existing stock and risk prevention. This approach is supported by three fully implemented basic systems:
- Project Company System: Each real estate project corresponds to one independent legal entity. Headquarters are strictly prohibited from illegally withdrawing funds from these project companies.
- Lead Bank System: Each project designates one bank or syndicate as the lead bank, where all development, construction, and sales funds must be deposited.
- Cash-Home Sales System: New real estate development projects will prioritize cash-home sales to prevent delivery risks. For pre-sale projects, fund supervision mechanisms must be improved.
This regulatory framework comes amid a shifting market landscape. The proportion of second-hand home transactions in China's real estate market rose from 27% in 2020 to 46% in 2025. In the first eight months of 2026, this figure reached 52%, exceeding the 50% threshold for the first time.
Major Urban Renewal Projects
The plan includes ambitious targets for urban renewal and infrastructure improvement during the "15th Five-Year Plan" period:
- Community Renovation: China plans to start the renovation of 115,000 old urban residential communities. Among these, 5,000 communities will implement complete community construction and renovation.
- Elevator Updates: Approximately 575,000 residential elevators will be updated or added.
- Green Spaces: The initiative aims to build or renovate 50,000 hectares of urban green space, including 15,000 pocket parks and 20,000 kilometers of urban greenways.
- Underground Pipelines: A major focus will be placed on underground infrastructure, with approximately 770,000 kilometers of urban underground pipelines scheduled for construction or renovation. This includes:
- 200,000 km of gas pipes
- 175,000 km of drainage pipes
- 175,000 km of water supply pipes
- 100,000 km of sewage pipes
- 120,000 km of heating networks
Furthermore, the investment scale for underground comprehensive utility tunnels during this period is expected to exceed 5 trillion yuan.