In my city (London) that happens too. The ultra luxury flats are 50% unsold and have an occupancy rate that is lower still and they are STILL building more luxury housing with swimming pools and gyms nobody uses.
The Soviet Union wasnt this bad at allocating resources.
This is a free market that needs to be taken out and shot. It's culminated in the creation of assets, much like NFTs, whose existence is not predicated on them actually being used because all it needs to do is soak up capital, and actually useful economic activity had to be mandated into existence by local government (Ordinances to mandate % affordable housing).
The worst part isnt even that. The worst part is that if developers cheap out and sell you a flammable flat they can charge you $100k++ after you've bought the flat to fix the flammability that was a result of their shoddy construction.
And if you do die, it's not their problem.
This is the culmination of decades of the UK mindlessly nodding along to the 1%'s "market knows best" propaganda.
There's a reason the supposedly "free market" Singaporean government builds 90% of the housing stock in the country like they're fervent Stalinists. Coz that's the economically efficient way to house people.