The demolition of a dilapidated neighborhood in northeast Beijing has been given final approval despite 45% of residents accepting the compensation package offered by real estate developers.

In a rare public vote last weekend, 2,451 households in the Jiuxianqiao neighborhood near the "798" art district, voted in favor of the plan, 1,260 opposed the plan and the remaining 1,762 shunned the ballot box altogether.

At present, developers are offering 4,300 yuan per square meter to residents with a further 30,000 yuan in subsidies for residents on minimum living allowances. However, this figure has been scoffed at by many residents who claim it is too low to buy a new apartment in Beijing, where property prices continue to sky-rocket.

"We understand and respect the residents' opinions and we will work to coordinate and proceed with the work," said Ba Changrui, deputy Party secretary of the Jiuxianqiao neighborhood committee, without specifying a start date for the demolition.

He also did not respond to inquiries as to whether the strong dissatisfaction of 23 percent of voters would lead to increased compensation.

The referendum was hailed by Chinese media as a "civilized and harmonious" way to resolve the dispute but many residents felt differently, saying it would change nothing and was a merely symbolic gesture.

He added that the redevelopment of the neighborhood was more than a mere profit-driven venture but was part of a government drive. At present, the neighborhood covers 840,000 square meters and is comprised of run-down dormitories dating back to the 1950s where families have to share kitchens and bathrooms.

"The demolition project was approved in 2003, but preparation work did not start until 2006," said Kong Lingguo, general manager of the project's developer Beijing Electronics Holding and Sunshine Real Estate Company. "The situation is quite complex. Some people actually own the houses, but many others don't - the property rights still belong to the companies they used to work for."

Kong said the company had already answered some fears back in May, including raising the level of compensation from 2,300 to 4,300 yuan per square meter. He did admit that many residents, including retired workers, would not be able to afford new apartments with the new compensation.

Sun Jigang, a local resident, lives in a packed bungalow with his family. "I would greatly enjoy living in new houses, but it is impossible for us to afford new accommodation," he said.

"The voting results will provide a good frame of reference in the future. The results and the contact we will maintain with residents will enable us to ensure a fair and just demolition plan," Ba said.

However, Jiang Ming'an, a law professor at Peking University, pointed out that despite gaining majority approval, the plan should not be acted upon rashly.
 
"It is wrong to ignore the requests and interests of those who voted against the plan," he argued. "The developers and the government should settle the issue through negotiation."

China passed its landmark property law in March this year ensuring that private property would now have the same protection status as public property. In April, the "nail-house" controversy in Chongqing saw a couple refuse to budge from their old house. Their stand caused a media sensation and the couple finally received 900,000 yuan (US$115,385) more in compensation for their property, set to be demolished to make way for a shopping mall.

(Xinhua News Agency June 15, 2007)