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This report provides a comprehensive analysis and forecast on the Chinese housing market, and also proposes some suggestions, from perspectives of the macro economy, market participants, market system, and public policies. It covers the following issues: analysis of the housing market from 2009 to 2010; forecast of the possible housing market changes in the 4th quarter of 2010 and 2011; the index system of Chinese housing market; the problems and challenges facing the Chinese housing market; and our recommendations.

From 2009 to 2010, the Chinese economy is in recovery and becomes more stable; the urbanization drives economic growth, the disequilibrium between housing supply and demand is more obvious; global economies have much different step in recovery after a serious recession, and global housing markets have much different changes; the housing market dramatically has changed, real estate companies mixed, home buyers tend to wait and see, renters bear heavy pressure, hire purchase dilemma has appeared; the credit of real estate has been progressive tightening; the supply of land enlarges, the land share of pure commodity housing declines, the average price of land rent falls back; the finance structure of real estate corporate also mainly relies on the credit; housing prices rose too fast, and the policies to control housing market have initial effect; housing security improved, the supervision intensity on housing market increased.

From the 4th quarter of 2010 to 2011, we forecast that, the recovery will continue, and the role of housing investment will be weakened; global economy and housing market will recover, and the performances in various countries will be quite different; land demand will increase; the financing environment will be tighten at first and then become loosed, the total amount of financing will increase slightly; housing market will continue to be adjusted.

The index system of Chinese housing market indicates：housing affordability of urban residents goes down in the almost cities; the bubble level in average housing price is high; the credit proportion of total funding is still high and real estate companies face financial pressure; the centers of housing provident fund have a larger increase in liquidity risk; housing security level is quite different among cities.

Challenges facing the Chinese housing market are as follows: both the inequality of income and the pressure of inflation get higher; there are pitfalls in the urbanization strategy and bottlenecks in the administrative system; urban residences have immature attitude to housing consumption, and housing price and rent is not enough affordable to the households; housing supply is limited though housing demand is accumulating; local governments appetite for land leasing revenue and it leads to an increase of land price; the funding of housing security is difficult to be guaranteed; inefficient administrative approving and obvious deficiency of government supervision.

Recommendations: (1)to moderately tighten monetary policy and continue the proactive fiscal policy, and control inflation; (2) to promote better urbanization patterns; (3) to enhance the endogenous capacity of real estate development enterprises, and improve added value of product; (4) to implement continuative housing consumption policy; (5) to broaden investment channels, adjust the financial structure, and strengthen risk management of financial institutions; (6) to increase housing supply; (7) to optimize the supply of land,and enhance the effectiveness of policies; (8) to improve the financial market system, enrich financial products, and enhance funding structural adjustment; (9) to make better housing market monitoring institutions, and enhance the industry selfdiscipline; (10) to strengthen financial support and clear the responsibility of main subject for promoting housing security; (11) real estate regulation must focus on regulating the relationship between housing supply and housing demand, and housing security.

In addition, we studied some thematic issues on the real estate market, including affordable housing construction, new regional planning, economic adjustment on inhibition of real estate, land control, financing of housing security and housing filtering.