What is your rationale for this comment? Can you provide more detail around metrics and financial indicators?
But any guess is good if that happens.
We can never run out of buyers!
you can saturate a market with houses way faster than pop out kids even at a modest growth 2.5x birth rate.
a bunch of middle class families had 3 or even 5 properties all with mortgages and so many of them weren't even built yet. who needs sustainability.
2 Most of the building boom was tofu dreg. We are talking from stuffing literal garbage from landfills into walls/foundations to using rebar that crumbles in your hand ending up with brand new buildings collapsing. Classic https://www.reuters.com/article/us-china-building-idUSTRE55Q...
And as a store of value I believe since they have nowhere else to invest their savings.
An over simplification of Evergrande's issue two key issues are 1. Housing always goes up, but that alone is just a thought it needs an action. The action is 2. they used the sales of an unbuilt, future property to fund an existing, active project.
Again, a relatively common practice, but this is a form of leverage. It allows insane growth because you can start projects way before than you would normally. Of course they were levered up so hard that once the housing market cooled they couldn't sell future projects which then could not fund current ones etc etc.
While it sounds like a ponzi scheme, it's not since "if all the projects" completed then everyone who bought a house would have a house and all peoples would be happy.