If prices are beyond the reach of the supposedly stabilizing part of the society, then who's buying what's on the market?

Either there's a high degree of consolidation on the real estate market, such that the properties are in hands of large conglomerates (maybe foreign). Or the middle class effectively has low buying power, which again asks to reconsider its middle definition.

Clearly there's some serious disbalance at play. Small square footage offerings are not a solution, rather it's another way to further increase a unit-price.