Abstract: Since the reform and opening up, China’s real estate market, which regards efficiency as priority, has witnessed its high-speed development. However, it also produced a variety of unfair phenomena. To develop China’s real estate market in the future, we have to deal with well the relationship between efficiency and fairness, and achieve the goal of the unity of efficiency and fairness based on social common prosperity. Therefore, we should establish four mechanisms: a law of incentive compatibility, government regulation on the market, the supply of indemnificatory apartments, and the efficient allocation of indemnificatory apartments. We should take positive measures to establish the housing security laws, carry out the survey of housing information to find out the housing situation, increase the effective supply of commercial residential buildings and reduce speculative demand for housing, increase the supply of multi-level indemnificatory apartments and improve its function, and to enhance the efficiency and fairness in the allocation and operation of indemnificatory apartments.

Key words: real estate, fairness, efficiency, realization mechanism