BEIJING, June 14 (Xinhua) -- The demolition of a dilapidated neighborhood in northeast Beijing will go ahead despite only 45 percent of residents agreeing to the compensation package offered by real estate developers.

In a rare public vote last weekend, 2,451 households in the Jiuxianqiao neighborhood located in northeastern Beijing 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.

The current compensation level stands at 4,300 yuan per square meter and an additional subsidy of 30,000 yuan for residents on minimum living allowances. Many residents claim the money is not sufficient to buy a new apartment in Beijing, where property prices have shot through the roof in recent years.

"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 did not say whether the explicit dissatisfaction of 23 percent of the voters would result in an adjustment of the compensation amount.

The referendum was hailed by some Chinese media as a "civilized and harmonious" way to settle the prolonged disputes and disagreement over the demolition plan. But many residents said they did not vote because they did not think the referendum was meaningful and would change anything.

"Some residents were uncontactable and others simply didn't show up," said Ba.

He added that the redevelopment of the neighborhood, which covers 840,000 square meters and is composed of run down dormitories built in the 1950s and 1960s in which inhabitants have to share kitchens and bathrooms, was not merely a commercial real estate program but a government-directed reconstruction project.

"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.

Kong said the company proposed a series of additional measures in May, including upping compensation from 2,300 yuan to 4,300 yuan per square meter.

"But with the compensation on offer, many residents, some of whom are retired workers, still cannot afford the new apartments," he admitted.

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

"The voting results are a good reference for our work in the future. We will analyze the results, keep contact with the residents and ensure the demolition plan is equal, open and justified," Ba said.

"The question is not about whether to demolish, but how. We are working on solutions that can make the plans acceptable for the residents," he said.

However, Jiang Ming'an, a law professor at Peking University, said even if the majority voted for the plan, the majority did not rule.

"It is wrong to ignore the requests and interests of the households who voted against the plan," he argued. "The developers and the government should settle the issue through negotiations," he said.

China passed its landmark property law in March this year with a new emphasis on the protection of private property. In April, the "nail-house" couple in Chongqing found themselves in the spotlight over a property dispute. The couple eventually received compensation of an additional 900,000 yuan (115,385 U.S. dollars) for their property lost to a demolition plan to build a shopping mall.