Rapid urbanization (together with climate change) is emerging as the most challenging issue of the twenty-first century. As the region with the highest percentage increase in urban population over the last two decades, Asia faces fundamental economic, social and environmental challenges to its continued development.

However, well planned and effectively governed and managed cities can provide the solution to many of these challenges. With the right economic policies and more equitable growth, poverty and slum reduction are achievable goals. Putting cities on the right path now can result in thriving, dense, green, resilient and sustainable cities.

The report throws new light on current issues and challenges which national and local governments, the business sector and organised civil society are facing. On top of putting forward a number of recommendations, this report testifies to the wealth of good, innovative practice that countries of all sizes and development stages have accumulated across the region. It shows us that sustainable human settlements are within reach, and that cooperation between public authorities, the private and the voluntary sectors is the key to success. This report highlights a number of critical issues – demographic and economic trends, poverty and inequality, the environment, climate change and urban governance and management.

The diversity of Asia provides unique opportunities for examining the effectiveness of different policies and instruments. The Asian financial crisis reveals our ignorance of market operations and makes us to rethink the Asian economic environment in which the markets operate and the performance of particular sectoral markets. Housing markets are very important areas.

Better policy design relies on better understanding of housing markets. The impact of sub-prime housing mortgage lending in USA on the global capital market and global economy further illustrates the importance of housing issues. This report examines the operation and performance of housing markets and particularly the impact of government intervention on the pergormance of housing markets in Asia.

It presents different approaches and instruments used by different countries to deal with similar housing issues. The Asian experiences and practices can provide inspiration for other parts of the world to design effective and equitable housing instruments and policies.