Jiangsu Province’s “13th Five-Year” Plan for the Modernization of the Residential Industry

　　 Jiangsu Province’s “13th Five-Year” Plan for the Modernization of the Residential Industry

　　Based on the “Thirteenth Five-Year Plan Outline for National Economic and Social Development of Jiangsu Province,” and in conjunction with the “Thirteenth Five-Year Plan Outline for Housing and Urban-Rural Construction in Jiangsu Province,” the “Thirteenth Five-Year Plan for the Modernization of the Construction Industry in Jiangsu Province,” as well as documents such as the “Guiding Opinions of the General Office of the State Council on Vigorously Developing Prefabricated Buildings” and the “Opinions of the Provincial Government on Accelerating the Promotion of Construction Industry Modernization and Facilitating the Transformation and Upgrading of the Construction Industry,” and taking into account the actual conditions of our province, this plan has been formulated.

　　I. Development Foundation and Current Situation

　　(1) Development Foundation

　　1. The level of comprehensive and coordinated economic and social development is relatively high.

　　Located in the Yangtze River Delta, Jiangsu Province is one of China’s most economically, socially, and culturally advanced regions. It boasts well-developed infrastructure in science and technology, education, transportation, and communications. For seven consecutive years, its regional innovation capacity has ranked first nationwide, giving it a distinct locational advantage. Jiangsu’s national economy features a fully diversified modern industrial system, with an increasingly rational structure across the three major sectors. High-tech industries and strategic emerging industries are developing rapidly, and its open-economy level ranks among the highest in China. Moreover, urban-rural development is becoming increasingly coordinated. As of the end of 2015, the value-added proportions of Jiangsu’s three major industries were 5.7%: 45.7%: 48.6%, and the rate of new-type urbanization reached 66.5%. In 2015, the province’s GDP totaled 7,011.6 billion yuan, placing it second nationally; per capita GDP exceeded 88,000 yuan, ranking first among all provinces (and autonomous regions) in China. Jiangsu’s relatively complete industrial system, strong scientific and technological capabilities, and favorable economic, social, and cultural environment provide a solid foundation and excellent conditions for the modernization of its residential sector.

　　2. The residential industry leads the nation in terms of scale and development level.

　　During the 12th Five-Year Plan period, Jiangsu Province witnessed rapid development in residential construction and the residential industry. For many consecutive years, the province consistently ranked among the top nationwide in terms of completed residential development investment, sales area, and completed construction area. According to statistics, during the 12th Five-Year Plan period, Jiangsu cumulatively completed residential development investment totaling 2,562.6 billion yuan, achieved residential sales of 420.55 million square meters, and saw completed residential construction area reach 369.37 million square meters—data for all three indicators that have remained firmly at the top nationwide for several years running. The real estate sector, with the residential industry as its core, has generated a cumulative value-added of 1,636.9 billion yuan, accounting for more than 5% of the province’s GDP; it has also generated tax revenues from the real estate sector amounting to 764 billion yuan, representing over one-third of the province’s total local tax revenue. As of the end of 2015, the per capita residential floor space for urban residents across the province stood at 39.62 square meters.

　　3. Residential industrialization is getting off to a healthy start.

　　Since the 12th Five-Year Plan, Jiangsu Province has taken enterprises designated as national residential industrialization bases as the leading force. In the three major regions—southern, central, and northern Jiangsu—it has successively fostered a number of manufacturing plants for residential components, parts, and materials, as well as modular housing enterprises. Jiangsu has actively explored the construction of prefabricated homes, modular housing, and integrated houses in affordable housing projects and selected commercial housing developments, accumulating considerable experience along the way. As a result, residential industrialization has entered a track of healthy development. Prefabricated building technologies have gradually matured; some enterprises have established their own PC factories, and residential components such as beams, columns, floor slabs, staircases, and balconies have begun to be widely used in affordable housing projects, marking the initial realization of large-scale production of fully prefabricated homes. Overall, Jiangsu ranks at the forefront of the nation in terms of the integration level of bathroom components, modular housing, integrated houses, and other highly integrated residential modernization technologies, as well as in terms of production scale, market share, and industrialization standards. The province’s residential industrialization is poised for further rapid advancement.

　　4. The number of pilot and demonstration projects for the modernization of the residential industry ranks among the top in the country.

　　During the 12th Five-Year Plan period, Jiangsu Province took the initiative to strive for national and provincial pilot demonstration projects in residential industry modernization as a key focus for advancing the modernization of the residential sector, achieving positive results. By the end of 2015, the province had established a total of 8 national residential industrialization bases, covering various sectors including real estate development, general contracting construction, and prefabricated component production—accounting for roughly one-sixth of the nation’s total number of such bases. A total of 62 projects were included in the national “Comfortable Housing” demonstration project implementation plan, representing approximately one-sixth of the nationwide total. Furthermore, 63 residential performance certification projects were carried out, accounting for roughly one-tenth of the national total. Thirteen projects passed the Guangsha Award assessment. The province has cumulatively developed and implemented about 700 provincial-level exemplary residential projects, with a total floor area reaching approximately 80 million square meters. Among these, 90 projects were designated as provincial finished-housing demonstration projects, and the total floor area of these finished-housing demonstration projects accounted for roughly 15% of the total floor area of all demonstration residential projects, placing the province among the top in the country in terms of demonstration project area. The province’s total energy-efficient building area reached 1,437.9 million square meters, accounting for 53% of urban buildings—a 20-percentage-point increase compared to the end of 2010. The total area of green building certification projects reached 110.03 million square meters, representing nearly one-quarter of the national total.

　　5. The framework of the policy and standard system for the modernization of the residential industry has been preliminarily established.

　　During the 12th Five-Year Plan period, the provincial Party committee and provincial government, together with relevant provincial authorities, actively implemented the state’s strategic guidelines and policies for promoting the modernization of the residential construction industry. They issued the “Opinions on Accelerating the Modernization of the Construction Industry and Promoting Its Transformation and Upgrading,” along with a series of supporting policy measures covering construction project bidding, drawing review, pricing standards, quality acceptance, and other related areas. Additionally, they released technical standards such as the “Technical Standards for Finishing of Ready-to-Move Housing.” Governments at all levels established joint conferences and offices for promoting the modernization of the construction industry, thereby establishing a coordinated working mechanism. They also carried out relevant pilot and demonstration projects, and have initially developed a framework for the policy and standard system to promote the modernization of the residential construction industry in our province.

　　(2) The Current Situation

　　Although our province has achieved some positive results in the modernization of the residential industry, the mechanisms for promoting this effort across different regions have not yet been fully established. As a result, the overall progress of residential industry modernization remains slow and its level is still relatively low, with significant regional disparities. Moreover, public and industry-wide recognition of these efforts remains insufficient, making them disproportionate and uncoordinated with the rapid growth and enormous scale of our province’s residential industry. The quality and efficiency of residential industry development still need to be improved. Only by accelerating the modernization of the residential industry can we effectively meet challenges, seize opportunities, and drive a fundamental transformation in residential industry production methods.

　　Significant opportunities. First, a series of policies and guidelines recently issued by the national government and Jiangsu Province—covering green building, energy conservation and environmental protection, circular economy, science and technology, design, quality, building informationization, and affordable housing projects—all related to the modernization of the residential industry—have provided Jiangsu’s residential sector with a rare strategic opportunity to accelerate its transition toward modernization characterized by green practices, technological advancement, intensive resource use, high efficiency, safety, and intelligence. Second, during the 13th Five-Year Plan period, Jiangsu will focus on promoting the transformation and development of new industrialization, steadily advancing new urbanization, fostering integrated urban-rural development, and strengthening north-south regional cooperation. These efforts will create substantial development opportunities for the residential industry to move forward at a higher level, into broader fields, on a larger scale, and at an accelerated pace. Third, during the 13th Five-Year Plan period, Jiangsu will see continuous increases in labor costs, land prices, energy resource costs, capital costs, and environmental compliance penalties. As a result, traditional housing construction methods will become increasingly unsustainable, opening up vast potential for the rise and growth of modern housing production approaches that emphasize factory-based, standardized, prefabricated, finished-product-oriented, specialized, and low-carbon practices. Fourth, as the income levels of urban and rural residents continue to rise, the proportion of residents demanding improved housing is steadily increasing. At the same time, the province is stepping up its efforts to accelerate supply-side structural reforms to an unprecedented degree. These developments will drive the residential industry—from both the supply and demand sides—to move toward modernization characterized by higher quality, superior performance, enhanced safety, greater environmental friendliness, and increased intelligence.

　　Serious Challenges. First, with the rapid advancement of the global technological revolution and the continuous promotion and application of innovative housing construction technologies and related breakthroughs, both late-developing provinces in China and developed provinces seeking to surpass Jiangsu—China’s leading province—are presented with opportunities. This will inevitably pose a serious challenge to Jiangsu’s existing industrial advantages and traditional market space in the modernization of its housing sector. Second, as the national industrial structure—especially in Jiangsu—is continuously upgrading toward higher sophistication, greater service orientation, and increased modernization, there will be a significant “pull effect” on high-end, multifaceted talent and highly skilled workers in the housing industry. Third, the housing industry faces heavy tasks in reducing overcapacity, destocking, and lowering benchmark prices, which in turn intensifies cost-reduction pressures for housing sector modernization and narrows the room for scaling up, upgrading product quality, and enhancing profitability.

　　II. General Requirements

　　(1) Guiding Ideology

　　Fully implement the spirit of the 18th National Congress of the Communist Party of China and the Third, Fourth, Fifth, and Sixth Plenary Sessions of the 18th Central Committee, as well as the Central Conference on Urbanization and the Central Conference on Urban Work. Earnestly carry out the “Two Concentrations and One High” strategic deployment adopted at the 13th Provincial Party Congress. Firmly establish and implement the development philosophy of “innovation, coordination, green development, openness, and shared benefits.” In accordance with the requirements of “suitability, economy, safety, greenness, and aesthetics,” promote the coordinated development of ready-to-move-in housing, prefabricated housing, and green housing; drive the transformation and upgrading of the residential industry’s development model; and foster the modernization of the residential industry, thereby providing strong support for building a new Jiangsu that is “strong, prosperous, beautiful, and high-quality.”

　　(2) Basic Principles

　　1. Government guidance, market leadership. Adapt to market demands and leverage the decisive and leading role of enterprises as market players in resource allocation. Play the guiding role of the government in areas such as planning and policy support, thereby establishing favorable institutional mechanisms and a market environment for the modernization of the residential industry.

　　2. Take a holistic and balanced approach while prioritizing key areas. Guided by the goal of ensuring the sustained, stable, and healthy development of the real estate industry and accelerating the modernization of the construction sector, we will focus on enhancing the quality and efficiency of the residential industry. We will comprehensively promote pilot demonstrations of ready-to-move-in housing, prefabricated housing, and green buildings, and foster integrated, coordinated, and synergistic development across these three areas.

　　3. Promote in a phased and region-specific manner, gradually expanding the initiative. Based on the economic and social development conditions and industrial and technological foundations of the southern, central, and northern regions of Jiangsu Province, clearly designate the southern region as the key area for promoting finished homes and prefabricated housing; the central region as an actively promoted area; and the northern region as an area encouraged to adopt such initiatives.

　　(3) Development Goals

　　By 2020, Jiangsu had attained a leading position nationwide in the overall development level of residential industry modernization and had preliminarily achieved residential industry modernization. A policy and standards system, an innovation-driven technology system, an industrial structure system, and a regulatory service system that are aligned with the requirements for sustained, stable, and healthy development of residential industry modernization have been established. After five years of concerted efforts, the residential industry in Jiangsu has further strengthened its position and role within the province’s national economic system.

　　— Increase the proportion of newly built finished homes. By 2020, the proportion of newly built finished homes across the province will reach over 40%, with the proportion in prefecture-level cities reaching over 50% and in other cities exceeding 30%. All prefabricated buildings and newly constructed public rental housing projects funded by the government will be delivered as fully finished homes.

　　—Promote the development of prefabricated residential buildings. The proportion of prefabricated residential buildings in newly constructed housing across the province should reach over 30%. Encourage the construction of affordable housing projects featuring prefabricated, ready-to-move-in homes.

　　— Promote pilot and demonstration initiatives. Establish more than 3 national-level pilot and demonstration cities, more than 20 national-level bases, and more than 100 provincial-level or higher pilot and demonstration projects.

　　— Cultivate leading enterprises with advantages in the modernization of the residential industry. Foster more than 50 enterprises that excel in residential development, design, component manufacturing, assembly and construction, and interior decoration and renovation, and establish more than 10 modern residential industry groups with significant influence nationwide and within the industry.

　　III. Key Tasks

　　(1) Improve the policy and standards system and optimize the market environment.

　　1. Improve the policy framework. In accordance with the requirements of relevant national and provincial regulations and policies, formulate and refine supporting policies and measures covering industrial development, planning approvals, land supply, infrastructure support, fiscal and financial incentives, and industry supervision for the development of ready-to-move-in housing and prefabricated residential buildings. Vigorously promote ready-to-move-in housing and popularize standardized, modular, and integrated prefabricated interior finishing. Actively carry out certification and promotion of residential components and parts, study and develop management measures for evaluating ready-to-move-in housing and prefabricated residential buildings, vigorously advance the construction of a residential performance evaluation system, and promote residential quality assurance insurance. Further refine supporting measures related to tendering and bidding for prefabricated residential projects, drawing review, cost estimation standards, project management, promotion and application of precast three-panel systems, and quality acceptance procedures.

　　2. Improve the standard system. In light of the latest national and provincial directives on the development of finished homes and prefabricated residential buildings, revise Jiangsu Province’s “Technical Standards for Finishing of Finished Homes” (DGJ32/J—2010). Conduct research and develop technical standards for prefabricated interior finishing as well as for the production, transportation, and installation of residential components and parts. Coordinate with the national authorities in revising the “Technical Standards for Residential Performance Evaluation” (GB/T 50362-2005). Based on the actual conditions of residential construction in Jiangsu, further refine the technical standards, specifications, and atlas documents already promulgated and implemented at the national and provincial levels for prefabricated residential buildings.

　　3. Optimize the market environment. In accordance with the requirements of comprehensively deepening reform and the “delegation, regulation, and service” approach, we will innovate and improve the regulatory mechanisms, systems, and service models for ready-to-move-in housing and prefabricated residential buildings. We will prioritize the adoption of prefabricated construction methods in government-invested projects and affordable housing programs, and accelerate the development of ready-to-move-in housing. We will actively leverage social capital and national policy-based funds to promote the growth of residential industry funds and support project financing and equity financing for leading enterprises, thereby driving the sustainable development of the residential industry.

　　(2) Promote the development of prefabricated finished housing.

　　Promote the integrated development of prefabricated finished homes and non-prefabricated finished homes. Prefabricated finished homes should adopt an engineering general contracting management model, fostering integrated design and coordinated construction of the main structural components, mechanical and electrical equipment, and interior decoration and fitting-out. We should also promote standardized, modular, integrated, and dry-process assembly-based renovation approaches. Implement a finished-home promotion initiative, vigorously carry out pilot demonstrations and build a performance evaluation system for finished homes, popularize quality assurance insurance for finished homes, and refine the content of the “Residential Quality Assurance Certificate” and the “Residential Usage Manual,” ensuring that consumers can make informed and transparent purchases.

　　Column 1: The Promotion Project for Prefabricated Finished Housing

　　A finished home refers to a residential unit in which all fixed surfaces within the enclosed spaces—such as flooring or wall finishes, installation of pipelines and terminal devices, and basic fixtures in kitchens and bathrooms—have been fully completed, thereby possessing essential functional capabilities. Prefabricated finished homes are residential units assembled on-site using prefabricated components and parts.

　　The prefabricated finished housing promotion project primarily includes: researching and formulating implementation guidelines for the development of finished housing; revising and disseminating Jiangsu Province’s “Technical Standards for Finished Housing Decoration”; promoting the development of prefabricated decoration; popularizing and applying technologies such as integrated kitchen and bathroom products and the CSI technology system; and conducting research on the development and satisfaction assessment of finished housing.

　　(3) Optimize the production and service system for residential components and parts.

　　The development of residential components and parts should align with market demands, adhering to the principles of specialization, market orientation, and socialization. We should guide residential component and part manufacturers to adopt a rational layout, promote the construction of industrial parks for residential components and parts, and foster a group of leading enterprises and production bases that feature advanced technology, specialized supporting systems, and standardized management. Residential component and part enterprises must continuously adapt to market needs, refine product varieties and specifications, actively embrace information technology, and advance specialized, standardized, and large-scale production. Furthermore, we should optimize service management systems covering logistics and distribution, assembly and construction, certification and accreditation, and quality control for residential components and parts.

　　Column 2: Optimization Project for Residential Components and Parts

　　The residential components and parts optimization project primarily involves the coordinated promotion of the construction of industrial parks for residential components and parts, as well as exhibition and display activities. It also focuses on fostering leading enterprises in the production, logistics, and equipment sectors of residential components and parts, and on driving the development of certification and accreditation bodies and the market for these components and parts. Key efforts will be directed toward promoting the application of prefabricated interior and exterior wall panels, prefabricated staircases, prefabricated floor slabs, and integrated bathroom units in residential construction projects.

　　(4) Promote the upgrading of the residential industry chain.

　　Promote the continuous upgrading, transformation, and high-end development of the residential industry chain, integrate resources across the residential industry chain, and enhance the overall value of the chain. Vigorously cultivate leading enterprises along the residential industry chain—including those engaged in development, design, general contracting, mechanical equipment, component and part manufacturing, logistics and transportation, assembly and construction, interior decoration, and specialized services—while advancing the establishment of industrial clusters for the residential sector. Create a residential industry development alliance that integrates government, academia, research institutions, and industry, as well as an online residential products expo. Widely promote cooperation and competition among leading enterprises in the residential industry chain, maximize the value of the chain, and ensure that the benefits of industrial development are shared equitably.

　　Column 3: Residential Industry Chain Enhancement Project

　　The residential industry chain refers to the chain-like relational structure that objectively emerges throughout the entire residential construction process, based on certain economic and technological interconnections and governed by specific logical relationships and spatiotemporal arrangements. It is characterized by completeness, hierarchy, and directionality.

　　The Residential Industry Chain Enhancement Project primarily includes establishing a modernization development alliance for the residential industry, organizing the Jiangsu Online Residential Products (International) Expo, cultivating leading enterprises and modern residential industry groups in each key segment of the residential industry chain, and promoting both cooperation and competition among leading enterprises across the entire residential industry value chain.

　　(5) Promote pilot and demonstration projects for the modernization of the residential industry.

　　Adhere to the integrated development concept of finished homes, prefabricated housing, and green housing. Coordinate with the latest national and provincial requirements for the development of prefabricated buildings and the modernization of the construction industry, and actively promote the construction of national and provincial pilot demonstration cities, demonstration bases, and demonstration projects.

　　Column 4: Pilot and Demonstration Project for the Modernization of the Residential Industry

　　The Pilot and Demonstration Promotion Project for the Modernization of the Residential Industry primarily involves fostering and establishing national- and provincial-level pilot demonstration cities, demonstration bases, and demonstration projects; implementing the National Comfortable Housing Demonstration Project and the Provincial Prefabricated Housing Demonstration Project; and advancing the development of a residential performance evaluation system.

　　(6) Promote the application of information technology in the residential industry.

　　Vigorously promote the widespread application of information technologies in residential construction and the residential industry, thereby enhancing the efficiency and quality benefits of residential industry production and management. In residential engineering projects, popularize full-lifecycle information management systems and promote the application of information technologies—including BIM technology, smart technologies, IoT technology, cloud computing, and big data technologies—across all stages of project planning, design, construction, acceptance, and operation management. Implement electronic delivery of residential engineering projects and provide long-term, sustainable property management services.

　　Column 5: Engineering Application of Information Technology in the Residential Industry

　　The Residential Industry Informatization Technology Application Project primarily involves promoting and applying full-lifecycle information management systems, BIM technology, IoT technology, “Artisan Cloud,” and other informatization technologies throughout the entire construction process of residential projects. It also aims to implement electronic delivery of residential projects and establish a housing big data platform.

　　IV. Guarantee Measures

　　(1) Strengthen organizational leadership

　　Leverage the comprehensive organizational and coordinating roles of housing and real estate work leading groups at all levels of government, the joint conference on promoting the modernization of the construction industry, and their respective offices in advancing the modernization of the residential sector, thereby establishing a collaborative working mechanism characterized by integrated development and coordinated promotion. Housing and urban-rural development authorities at all levels should earnestly fulfill their responsibilities as leading departments, strengthen communication and coordination with relevant member units, pool efforts, and promote overall advancement. Enhance monitoring and evaluation of the development level of residential sector modernization, and incorporate the advancement of residential sector modernization into the assessment framework for the modernization of the construction industry.

　　(2) Implement policy support

　　Improve the policies, regulations, and measures for the modernization of the residential industry, integrating them with policies related to energy conservation and emission reduction, environmental protection, industrial development, and technological innovation, and thereby intensifying policy support for the modernization of the residential industry. Relevant provincial departments and local governments should, based on actual conditions, step up efforts to implement supportive policies covering industrial development, planning approvals, land supply, infrastructure support, fiscal and financial measures, and industry regulation, with a particular focus on promoting the development of ready-to-move-in housing and prefabricated housing. Ensure that these policies are effectively put into practice.

　　(3) Strengthen technical guidance

　　Localities should establish expert committees for the modernization of the housing industry and develop a pool of key technical talent, responsible for reviewing and approving housing industry modernization project plans and applied technologies within their respective regions. They should also implement tiered training programs to cultivate leading talents in housing industry modernization, mid- to senior-level management and operational personnel, and specialized technical professionals. Furthermore, efforts should be intensified to build practical training bases for housing industry modernization, establish various types of industry-education alliances, and develop a large-scale workforce of highly skilled industrial technicians.

　　(4) Conduct publicity and promotion

　　Deeply publicize, through various forms, the economic, social, and environmental benefits of modernizing the residential construction industry. Widely disseminate knowledge about ready-to-move-in housing and prefabricated housing, thereby enhancing public awareness and acceptance. Foster a positive atmosphere in which all sectors jointly pay attention to and support the modernization of the residential construction industry, and promote its sustained, stable, and healthy development.

　　(5) Strengthen the implementation of the plan.

　　During the implementation of this plan, it is essential to strengthen planning implementation management. We must break down the goals and tasks set forth in the plan at each level, clearly define responsibilities, and ensure that work tasks are effectively carried out. In conjunction with our province's efforts to promote the modernization of the construction industry, we should conduct thorough assessments of the current level of residential industry modernization. We should also intensify performance evaluations and assessments of demonstration cities, demonstration bases, and demonstration projects. A dynamic assessment mechanism for plan implementation should be established, enabling timely adjustments based on new situations and emerging issues encountered during the implementation process, thereby enhancing the scientific rigor and practicality of the plan.