Focus | 1M Units! 150,000 km! MOHURD’s "Urban Renewal + Real Estate Stabilization" Policy Package Shapes New Sand & Gravel Demand Landscape

Recently, the Party Committee of China’s Ministry of Housing and Urban-Rural Development (MOHURD) convened an enlarged meeting to implement key directives from President Xi Jinping during the 2025 Two Sessions. The meeting emphasized accelerating urban renewal, stabilizing the property market, and consolidating the effects of the "Four Repeals, Four Reductions, Two Increases" policy package. It vowed to secure housing delivery, expand urban village and 危房 renovations, acquire existing commercial properties, and foster a new real estate development model to balance supply and demand.

On March 9, 2025, MOHURD Minister Ni Hong announced at the 14th National People’s Congress that all pre-2000 urban villages will be upgraded, expanding last year’s 1M-unit target. Additionally, 150,000 km of underground pipelines will be renovated, and 1,000 flood-control projects completed. As a core material for concrete and infrastructure, sand and gravel demand will surge with wall reinforcement and pipeline installations, driving growth in construction materials markets.
Dual-Pronged Approach to Stabilize the Property Market
The Government Work Report stressed sustained efforts to reverse market declines. Minister Ni outlined three strategies:
Strengthen Policy Packages: Expand "whitelist" project financing to ensure timely housing delivery.
Acquire Existing Properties: Utilize 4.4 trillion yuan in local government bonds for land reserves and commercial property purchases.
Reform Systems: Modernize development, financing, and sales frameworks to foster a sustainable market.
Prioritizing Urban Renewal
Urban renewal is a strategic pillar of China’s urbanization. Since 2019, nearly 280,000 老旧小区 have been upgraded, adding 31M㎡ of public spaces, 500,000 km of pipelines, and 40,000 pocket parks. MOHURD’s 2025 focus includes:
Livelihood Projects: Renovate pre-2000 communities, expand urban village transformations, and build inclusive "15-minute living circles."
Development Projects: Revitalize industrial zones, historic neighborhoods, and cultural heritage sites.
Safety Projects: Upgrade 150,000 km of pipelines, eliminate flood-prone areas, and digitize utility infrastructure.
Building "Quality Homes"
Minister Ni emphasized constructing safe, green, and smart homes with minimum 3-meter ceilings. Initiatives include a national design competition and retrofitting old homes to modern standards, starting with affordable housing.
Conclusion
MOHURD’s integrated policies—urban renewal, infrastructure expansion, and 房企纾困 —offer dual growth drivers for the sand and gravel industry. In 2025, demand will pivot to both 存量 renovations and new projects, requiring firms to strengthen regional resource integration and align with policy-driven market shifts.