Seize opportunities to drive development and witness a city’s transformation and renewal—Zeshi Consulting’s high-quality planning case for “Urban Village Renovation Projects”

Introduction

Over the past decade, city skylines have been rising at an astonishing pace, reflecting the rapid advancement of urbanization. However, the growing mismatch between supply and demand for incremental space has become increasingly evident, driving a profound transformation in urban development strategies. We are now entering a new phase—shifting from outward expansion to inward enhancement, and from large-scale incremental construction to a balanced approach that emphasizes both the renewal of existing stock and the adjustment of new increments.
To fully implement the spirit of the 20th National Congress of the Communist Party of China and put into practice the important concept of “A people’s city is built by the people and for the people,” China’s megacities and super-large cities are making concerted efforts to enhance their urban planning, construction, and governance capabilities, accelerate the transformation of development models, and focus on building future cities that are livable, resilient, and smart. They strive to meticulously refine every inch of land, ensuring that urban renewal not only reshapes physical spaces but also serves as a powerful engine for improving people’s quality of life and enhancing their sense of well-being.

I. Urban Villages: A Product of Urban Development—Urban villages, in a relatively straightforward explanation, are rural areas nestled within cities, where residents no longer engage primarily in agricultural labor. Amidst the towering skyscrapers and bustling streets of major cities across the country, there always exist pockets of places that stand out distinctly from this vibrant urban landscape: ramshackle, disorganized, and dilapidated residential buildings or concrete structures; dirty, dimly lit, and narrow streets; and throngs of people from all walks of life, each with their own unique stories and backgrounds.

Figure 1: A Village-in-the-City Hidden Among High-Rise Buildings
Since the reform and opening-up policy was launched, China’s economy has experienced rapid development, and urban boundaries have continued to expand, gradually absorbing what were once suburban farmlands into bustling urban landscapes. As vestiges of memory at the urban fringe, “urban villages” were originally rural heartlands. Yet as the relentless tide of urbanization swept in, though their locations are now surrounded by towering skyscrapers, their state has remained frozen on the other side of time. The future trajectory of these urban villages has diverged into two starkly different paths:
① A portion of the urban villages has hitched a ride on the fast train of urban development, gradually resonating in sync with the city’s pulse and integrating into the economic and cultural landscape of the modern metropolis.
② Due to various external factors, some rural areas—severely lagging behind the pace of urban development and even conflicting with it—have gradually been left behind, isolated amid the towering skyscrapers rising around them, and urgently await an opportunity for rebirth.
Every plot of land in the urban villages holds both the potential and the challenges of transformation, awaiting the touch of innovative thinking and meticulous planning—so that it may find its own place and value within the blueprint of the new era.

II. Causes and Impacts of Urban Villages

The development of each major city has its own distinctive characteristics, and the urban villages that exist within them come in a wide variety of forms. Yet, these urban villages are generally saddled with negative labels such as "dirty, chaotic, and substandard." This contrast is particularly striking against the backdrop of the gleaming, well-maintained surrounding cities. The root cause lies primarily in the fact that urban villages lack the comprehensive and unified management systems found in neighboring urban areas: housing construction often lacks rational planning, essential living amenities are rudimentary, and the population consists largely of migrants who face inadequate public security measures. Whether in terms of overall urban planning or urban management and development, this situation has led to adverse effects and significant obstacles.

Figure 2: Frequent occurrences of unauthorized and haphazard construction in urban villages.
However, from a certain perspective, the existence of urban villages at that time also carried certain significance in the context of the social situation then. Although their living conditions were relatively poor, urban villages enjoyed the advantageous location of being close to the city, and their housing costs were comparatively low. Over the years, they have provided countless migrant workers, recent college graduates, and ambitious young people with the confidence, determination, and ambition needed to establish themselves, grow, and thrive in big cities. This is precisely why urban villages have been both recognized and cherished by urban areas yet have not been abandoned in the course of urban development.

III. The Future Development of Urban Villages—As a unique phenomenon in the urbanization process, urban villages have long posed a complex challenge to urban development. However, with the deepening implementation of the new urbanization strategy and the increasingly urgent need for urban renewal, opportunities for their transformation and upgrading are now emerging. At present, the nation’s heightened emphasis on sustainable urban development, coupled with policy orientations aimed at enhancing residents’ quality of life, improving the urban environment, and promoting social harmony, are providing unprecedented support and momentum for the transformation of urban villages.
Against this broad backdrop, various urban village renovation policies have emerged, aiming to transform these villages into new-type communities that feature modern urban functions, an appealing environment, and well-rounded supporting facilities through systematic planning and innovative renovation approaches. The promotion of these policies encompasses not only financial support and the streamlining of administrative approval processes but also the encouragement of private capital participation, the introduction of advanced design concepts and management models, and the strengthening of resident engagement and protection of their rights and interests. Such efforts unlock new potential for urban development and lay a solid foundation for the overall progress and harmony of society.

IV. Case Study: Chengdu International Railway Port National Economic and Technological Development Zone—European Industrial City Area Urban Village Renovation Project
The Chengdu International Railway Port, located in Qingbaijiang District of Chengdu, has seen accelerated economic development in recent years, accompanied by a sharp increase in population density, vigorous industrial activity, and a dense urban fabric. Consequently, traffic congestion and ecological challenges have become increasingly severe, making the task of optimizing and upgrading the urban area particularly urgent. Adhering to the “soul” of the new development philosophy, Qingbaijiang District has vigorously implemented urban renewal initiatives to break the imbalance between the north and south sides of the Pi River. In response to the planning and development needs of Qingbaijiang District, Zeshi Consulting, entrusted by the client, has taken on the critical responsibility of providing preliminary consulting services for the “Chengdu International Railway Port National Economic Development Zone European Industrial City Area Urban Village Renovation Project.”

Figure 3: The Rapid Development of Chengdu International Railway Port
Through thorough background research, on-site surveys, and analysis of the current situation, the project team precisely aligned policy guidelines with actual needs. Based on Qingbaijiang District’s geographical advantages, industrial development, and land prices, the team conducted a multi-dimensional analysis of the project, accurately identifying its key strengths and pinpointing the bottlenecks in implementation. Working overtime and pooling collective wisdom, the team tackled each challenge one by one. The high-quality preliminary consulting results provided local government departments and financial institutions with a solid basis for making informed decisions.

The project involves the renovation of over 4,000 households and covers an area of approximately 4,000 mu. Ultimately, it secured special loan funding exceeding 2 billion yuan from the Qingbaijiang Branch of the Agricultural Development Bank, laying a solid financial foundation for the smooth implementation of the project.

Figure 4: Project Construction Site
Xinjin District Yongshang Old Wharf Area Urban Village Renovation Project
During the 14th Five-Year Plan period, Xinjin District is accelerating the development of an ambitious spatial blueprint characterized by "one axis driving development, four zones advancing in parallel, and multiple points collaborating synergistically." The Cheguan and Wangjiang communities, located adjacent to the Yongshang Town government and a well-established development zone, are valuable areas whose land value is evident. However, they are currently constrained by their status as urban villages—marked by chaotic layouts, poor environmental conditions, and lagging public services—urgently calling for transformation and upgrading. Urban village redevelopment has become an imperative.
Zeshi Consulting keenly grasps the current situation and actively responds to the call for the renovation of urban villages in Xinjin. Taking the initiative and acting swiftly, we promptly established a project team and are working closely with the local government and project stakeholders, achieving deep integration and collaboration. Team members have immersed themselves in the field, meticulously conducting surveys and carrying out scientific planning, tailoring renovation strategies specifically to the actual conditions of the two communities.
The project is expected to cover more than 500 households and benefit nearly 2,000 residents, with a renovation area of nearly 700 mu. Thanks to its forward-looking planning and feasibility, the project has secured special loan funding of over 1.2 billion yuan from the Xinjin Branch of the Agricultural Development Bank, injecting strong momentum into this transformative journey of the urban village.
The series of urban village renovation projects in Kunming boasts a long history of urban renewal and transformation. As early as February 29, 2008, the Kunming Municipal Party Committee and Municipal Government issued the first document on urban village renovation—the “Guiding Opinions on Accelerating the Reconstruction and Transformation of ‘Urban Villages’”—marking the official launch of Kunming’s urban village renovation initiative. However, the path to renovation has not been smooth. The inherent challenges posed by high-density buildings and complex land ownership issues in urban villages have become formidable obstacles, causing some projects within the urban renewal campaign to run into difficulties.

Figure 5: Real-life view of a village-in-the-city in Kunming
In 2023, China embarked on a new round of urban village renovation projects, providing an opportunity to relaunch these initiatives. On December 21, Zeshi Consulting received a project application mandate and faced the challenge of tight deadlines and heavy workloads. The firm swiftly mobilized a total of 32 professionals from its various branches, with senior leaders personally leading six specialized task forces. Taking advantage of the New Year’s Day holiday, the teams urgently deployed to Yunnan, working closely with the Kunming Municipal Bureau of Housing and Urban-Rural Development and all district and county authorities to launch an intensive problem-solving effort. They conducted “deep treatments” for the various “difficult and complicated issues” that had plagued the projects in the early stages. After continuous, intense efforts, the teams efficiently completed a total of 66 plans for 22 projects within just one week, successfully getting all projects listed and securing over 40 billion yuan in financing support.

This series of projects is expected to renovate approximately 27,000 households and build around 47,000 new resettlement units, with a total investment reaching as much as 60 billion yuan, thus writing a new chapter in Kunming’s urban renewal efforts.
With the smooth implementation of the first batch of urban village renovation projects, on May 14, 2024, the General Office of the Ministry of Housing and Urban-Rural Development and the General Office of the Ministry of Finance issued the "Notice on Organizing the Application for Special Loans for the Second Batch of Urban Village Renovation Projects." Zeshi Consulting closely followed the nation's initiatives and actively undertook the preliminary planning and reserve submission work for the second batch of urban village renovation projects in Mianyang and Yibin, completing a total of 7 projects with a total investment exceeding 6.5 billion yuan and financing amounting to approximately 4.7 billion yuan, thereby fully supporting the overall national effort in urban village renovation.
Zeshi Consulting’s deep involvement in two consecutive phases of urban village renovation projects fully demonstrates its extensive expertise and practical effectiveness in the field of urban renewal, laying a solid foundation for the smooth implementation and successful completion of these projects. As urban village renovation continues to advance, Zeshi Consulting will remain committed to deepening its specialization, leveraging its wealth of practical experience and outstanding innovative capabilities to contribute even more intellectual energy and momentum toward the revitalization and upgrading of cities and the harmonious development of communities.

Contribution/ Ren Jie

Editor/Wu Diya
First Draft, First Proofreading / Zhong Xiaodan

Second Review, Second Proofreading / Wei Juan

Editor-in-Charge/Zeng Huaqian

This article is for informational purposes only and does not constitute any investment advice.