Qingdao has made development of prefab construction the focus of its efforts to climb up the global value chain in construction industry.

In 2017 alone, 3.1 million square meters of planned prefab projects were executed in the city across residence, office, education facility and commercial space.

By the end of the year, there will be nine prefab industrial bases established in the city, with a combined capacity of prefab parts to cover a total of 10 million square meters.

Qingdao’s rapid development in prefab construction has recently been recognized by the central government with the Housing and Urban-Rural Development Department listing it among the first demonstration cities of prefab industry.

As a competitive alternative to traditional property development, prefab construction provides better quality, while saving resources, cutting construction time, labor and pollution.

The sector has taken a 35 percent share in construction in the US, and 60 percent in Hong Kong’s commercial buildings. In Japan, 85 percent of high-rises are constructed with prefabrications. But in China the market share is a mere 10 percent as of late.

Now the country aims to raise prefab’s market share. In 2016, the State Council issued a guidance proposing to reach a 30 percent share of prefab buildings in additional floor areas in the next decade.

Qingdao will assume an even more ambitious approach to realize the targeted 30 percent market share within its jurisdiction by 2020.