Since the second quarter of 2009，land prices soars in most cities，the land-kings of high price emerges one after another incessantly. The cause of land-Price soaring is that state-owned enterprises（SOE）marches towards real estate market on a large scale. Not only the SOE dominating in Real Estate？Business having been accelerated buying land step，the SOE dominating in other industries steps up to real estate business penetration more. This paper analyses the causes and effects on the SOE’s penetration in real estate business，also provides some corresponding countermeasures stopping this bad economic behaviour.