The Chinese government is really smart about it. From what I understand, it goes at follows: the price bubble will not burst if real estate market has little to no transactions. The trick is to limit the number of eligible buyers with policies, so that the price can only go up.

It's really genius if you think about it. Chinese housing market is NOT a free market, and the government is the biggest player (and judge) in it. If it is made-up from the beginning, how can it collapse?

Well, unless the government collapses first.