Exploring Private Capital's Approach in the Renovation of Old Urban Residential Areas in China

Old Urban Residential Areas (OURA) refers to residential communities built early in the urban area, with low maintenance and management, inadequate municipal supporting facilities, and insufficient community service facilities, where residents have a strong desire to renovate. OURA renovation is a rather popular concept in China from 2020, marked by its being included in the central government's work focus in the next five years and national fever of renovation projects. However, facing the problems such as shortage of funds and weak operating capabilities, governments turn to introduce private capital. This study strengthens knowledge of the private capital's approaches in OURA renovation by selecting Jinsongbei Community as a case study to analyze its renovation process. Investigations are made through talks, governmental files, and online resources, which help summarize and analyze the community background, renovation process, and organizational relationship. The results show that the private-led renovation is featured by administrative impact and relational contracting. The private capital has promoted efficient resource allocation and inspired public participation in community planning. However, Jinsong’s model has potential flaws. In the last, the author recommends approaches to protect and promote the private-led OURA renovation's sustainability through organizational structure, implementation, and payment mechanism.