Core Viewpoint - The trend in major cities across the country is to renovate old and dilapidated buildings instead of demolishing and rebuilding them, which is driven by cost-effectiveness and policy direction [1][4]. Cost Analysis - The cost of demolishing an old building in first-tier cities like Beijing and Shanghai can reach 15,000 to 20,000 yuan per square meter, primarily due to demolition compensation and new construction costs [3]. - In contrast, the average renovation cost nationwide is only 1,000 to 3,000 yuan per square meter, making it one-tenth to one-fifth of the demolition cost [3]. Policy Direction - Since the launch of the old building renovation initiative in 2020, nearly 280,000 old communities have been renovated, benefiting 120 million people [3]. - By 2025, there are plans to expand the renovation scale, with 1 million new urban village renovations and 1.7 million units in 35 major cities needing renovation [3]. Effectiveness of Renovation - Renovation can effectively address fundamental issues, as evidenced by improved resident satisfaction in Shanghai's Shikumen area, which rose from below 50% to over 80% after renovation [5]. - Renovated old communities in core urban areas can see property prices increase by 10% to 15%, while non-core areas may experience a 5% increase [5]. Market Dynamics - The renovation of the Qiuyuan community in Kunming led to a 15-day reduction in the second-hand housing transaction cycle and a narrowing of the bargaining range from 6.8% to 3.2% [6]. Social Stability - Renovation helps avoid social conflicts associated with demolition, as it minimizes the need for resident relocation and disputes [8]. - The "co-creation" model in projects like the one in Chongqing has achieved a 98% resident satisfaction rate by involving residents in the process [9]. Sustainable Development - Renovation aligns with sustainable urban development trends, reducing resource consumption and construction waste compared to demolition [9]. - Environmental assessments indicate that demolishing an old building generates significant waste, while renovation avoids these issues and optimizes urban space [9]. Economic Impact - The installation of elevators in renovated buildings can stimulate a market demand for 4.38 million units, impacting various industries [9]. - The old renovation project in Kunming attracted 3 billion yuan in social capital, demonstrating a sustainable model where every 1 yuan of government funding generates 3.2 yuan in social capital [9]. Future Outlook - With the implementation of more financial tools and policy support, renovation is expected to become the mainstream approach for urban renewal, revitalizing old communities in the new era [10].