Intensive land use( ILU) policies affect the demand and supply of land. These policies promote efficient land use, and demands for land must therefore be evaluated in terms of the level of land-use intensity. If the demand is considered excessive, ILU policies act like a "valve"to restrict the land supply. Drawing on data from Chengdu,China,where developable land is scarce,we construct a model using system dynamics( SD) to simulate two scenarios: ILU development and non-ILU development. The results show that when ILU leads to positive land-use efficiency,land supply will exceed demand,resulting in an appropriate level of real demand for the current population level and GDP. Thus,artificial demand( inflated by investors) is reduced. By contrast,when non-ILU leads to negative land-use efficiency,land demand will exceed supply. In this scenario,artificial demand is higher than real demand.