Looking back to the year 2022，sluggish sales，pressure on housing prices，polarization of land auctions，stalling investment，sluggish financing and frequent defaults…… the real estate industry，which has been in an accelerating downturn，has become another hand holding the throat of the Chinese economy in addition to the COVID-19 pandemic. People often say the real estate industry has cycles. It’s true but cannot explain everything. At the present stage，the underlying logic of the real estate market has changed. Long-term factors are intertwined with short-term contradictions. Looking ahead to the year 2023，the real estate industry is the key to stable growth，expand domestic demand and ensuring people’s livelihood of China. There is still marginal space for optimization of policies at both sides of supply and demand. The volume and price of sales would be easy to stabilize but difficult to rebound. Investment in real estate would be facing great downward pressure. The credit risks of real estate enterprises would be eased while stratification clearly. The industry would transition to a new development mode after the market clearing gradually.