Nantou Ancient City, located in the heart of Shenzhen, is a remarkable urban regeneration project that embodies the dual characteristics of historical significance and contemporary urban village renewal. This site, with a rich history dating back 1700 years, features remnants such as the city gate, court, and ancestral hall, providing a distinct branding edge and reflecting the site’s rich past.

Nantou Ancient City is also representative of the “Urban Village” concept, a byproduct of Shenzhen’s rapid urbanization following its designation as a Special Economic Zone in the 1980s. It is one of over 400 such urban villages, originally informal housing solutions for a surging migrant population, which adapted to high-density living to maximize rental income. This transformation, while optimizing space and affordability, resulted in significant challenges such as compromised hygiene and fire safety.

In response, the government initiated an improvement program in 2018, selecting Nantou Ancient City to pilot the innovative “Urban Space Operator” model. This model, through a joint venture (JV) between the government, village committee, and a private entity, aimed to address urban density issues while balancing public interests with private investment.

The Nantou Ancient City project spans 350,000 square meters, encompassing 992 buildings. The first phase, completed in 2021, involved refurbishing about 300 buildings, with a Gross Floor Area of 89,000 square meters.

The success of this phase, following three years of operation and refurbishment, is a testament to the effective long-lease strategy employed by the JV. This strategy has established a sustainable model of urban regeneration, offering a balance of public responsibilities, individual landlord interests, and financial viability.

Nantou Ancient City now stands as a model for revitalizing urban villages across China, suggesting a scalable solution for enhancing communities by catering to the needs of dynamic modern urban populations.