The history of Taiwan has formed the developed structure of Taiwan cities, policies of industry development caused the main markets focusing in north Taiwan, generating the problem of uneven development between regions. This article adopts ¡§New Economic Geography¡¨ proposed by Krugman to discuss the differences between north region and south region in Taiwan. Moreover, this article extends the issue to real estate market and researches the influence of industrial clusters, transportation construction, labor market and migration of employed population. The empirical results indicate that money supply, industrial cluster and the construction of transportation will affect the development of regional house prices.