Through the correlation of exchange rate fluctuation on real estate market before and after the reform of its regime in July, 2005, we find that expectations on exchange rate serve as the main factor to affect the real estate price, which is proved in the correlations between different trends of current and forward exchange rate and different price index of housing and office building in.Shanghai. This is due to the unique feature of real estate to be both consumer goods and assets, as well as speciality of its demand and supply. Therefore, it is necessary to take this factor into account for the concerned departments in policymaking.