Over the last decade, both macroeconomic and urban economic developments in China have always been subjected to the strong influence or at times, being dominated by the development in real estate.

We observed that the fluctuation in Suzhou real estate market reflects the macro background of excess capital in China – the real estate bubble in Suzhou is inflating rapidly, Suzhou has a large number of migrant workers and the demands for public social services are on constant rise.

The excess capital is flooding into the lowland of the real estate market, this gives a one-time fiscal benefit to the local governments, the excessive rise in the real estate market , however, in the long run, will dampen the competitiveness of the city's developments in the future.