Beijing Municipal Government has introduced and implemented a number of plans and measures that have a major impact on the future development of the city, which target to decentralize non-capital functions of Beijing, transform the mode of urban development, improve the urban governance system and effectively ease "big city diseases". The transformation of urban functions will promote the change of urban space to meet the new demand of economic and social activities. Therefore, urban renewal has gained intensive attention from developers and investors.

Government plans and policies, economic laws of real estate market development and the evolution of finance and technology are the important factors influencing urban renewal. In the paper, it will take all of them into account and explore the development direction of urban renewal of Beijing under the dual action of government supervision and market allocation of resources.