Abstract:The current system of land grant in China not completely change the structure of its negative impact on the real estate market through bidding, auction and even the transfer reform. It led to the housing market oligopoly market structure, lacking of price competition in domestic goods, resulting in high prices, and co-exist house vacant and idle land. Meanwhile, with the background of monopoly in land supply, the absence of offside of some local government departments, resulting in regional land which sold to the same one or a few real estate development companies,formating monopoly and oligopoly market development directly. It recommend that the government should note the comprehensive utilization of land policy system as a tool for macroeconomic control, improving the micro-regulation of land and the establishment of the legal system of land regulation.