In 2021，China’s residential real estate market has maintained stable as a whole. Both area sold and transaction volume of new homes reached a record high，while the transaction volume of existing houses decreased on a YoY basis. During the first half of the year，the market was quite vibrant，however，the market turned cold rapidly after June. During the fourth quarter，the real estate market bottomed out as the financial and credit environment began to improve. By and large，we expect that the residential real estate market will gradually recover in 2022. However，the future development of the real estate industry could still be plagued by risk factors，such as weakening investment by real estate companies and intensified differentiation of the urban market. We suggest that public policies could improve in terms of coordination，gradualism，and stability，and be more targeted. We also suggest that the authorities consider further optimizing the design of existing long-term mechanisms，such as the “three red lines”，real estate loan concentration management，and centralized land transfer.