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Shantytown is a type of urban residential space with a long history in populated areas; it is a negative and stark space with a gradual decline in function and poverty. It is also a concentrated reflection of an unbalanced and inadequate development of the urban social space, which restricts the development of a high-quality and sustainable social economy. Taking shantytown reconstruction in Nanjing as an example, based on the information of 434 shantytown plots dating from 2008 to 2020, it combines the two typical cases of state-owned land: Xijie and collective land—Nanhe, and the questionnaire data regarding the removal and resettlement of residents, the driving mechanism and the effect of social space reconstruction of shantytown. Reconstruction is mainly discussed based on the overall understanding of the space–time characteristics of shantytown reconstruction in Nanjing. It is found that the top-down policy which transfer from the central government to the local government, the value orientation of urban growth alliance in pursuit of asset appreciation, and the interest demands and game attitude of shantytown residents from the bottom up are all important forces to promote shantytown reconstruction. Shantytown reconstruction plays a key role in improving the housing conditions of residents; it fully taps on the potential land value, thus enhancing the urban function and quality. However, the gentrification reconstruction of the original shantytown space, and the centralized resettlement of the poor groups in the urban fringes, have led to an unbalanced development of the new urban social space, with an insufficient guarantee for the removal and resettlement groups. In view of the social space problems caused by the poor people living in the outer suburbs, this paper puts forward some recommendations on policy optimization and plan adjustment of shantytown reconstruction.

Mechanism and Effect of Shantytown Reconstruction under Balanced and Full Development: A Case Study of Nanjing, China