China has accelerated the renovation of urban villages, one of three major segments of construction activities in the country, in addition to dual-use public infrastructure construction (a normal public facility in a normal situation, while an emergency facility during a major emergency) and affordable housing construction, according to local Chinese media reports. In 2024, 22 urban village renovation projects are to be carried out in Shenzhen, one of China’s first-tier cities.
The current urban village renovations are carried out against the backdrop of a fundamental shift in the relationship between supply and demand in the real estate market, and a shift in the real estate sector towards a new mode of development, which is one of the important elements in the implementation of urban renewal. Accordingly, more demand from buyers will be triggered in the real estate market, which will exert a positive impact on the steel industry.