The price of real estate is the result of economical operation and, most importantly, regulation mechanism of resource distribution for real estate industry. Since the process of economic reform began in 1978, there have been several times that the Chinese government imposed contractive measures intended to slow down the economic growth. This paper applies insights from economic theory to explain recent housing price patterns in China’s four largest metropolitan areas. (Beijing, Shanghai, Shenzhen and Guangzhou) and discusses how the Chinese Government’s stance and policy affect the development of real estate. By examining the degree of impact on the housing market as a result of Macro Control Measures, excluding other housing market drivers; the empirical results revealed the degree of effectiveness by the Chinese Government administrative control over the housing market vary across the regions.