Abstract: The development of real estate in China is growing gradually in recent years. Its inducing effect to other industries has already made it become one of “three carriages” （two others include investment and export） of economic development of China. But recently, there appear “bubbles” in the real estate market which will influence lasting sound development of Chinese economy. In order to control the bubbles we must firstly realize the factor influencing demand of the real estate. In this paper we set up a demand model of the real estate and applied panel data to detect the main factor influencing the demand. We find that the demand of every area is different, macro adjustments and controls should vary with area.