All is not rosy in China...
This bubble is going to burst. But unlike the US housing bubble which was built on liar loans and corrupt financial transactions, I do believe this bubble will leave a positive legacy: it has built real stuff that can be used by real people. The problem is the stuff is priced too high. But once the bubble bursts, prices fall, then people can afford to move into all these wonderful new buildings.
Capitalism is infested with bubbles. That's because humans are driven by fear, greed, and panic. China is just waiting for the fear and panic to set in.
The distortions of China are not contained to China. They affect places around the world. They certainly keep the Vancouver housing market way over-priced. I sold my crummy old house for a fortune because the rich Chinese are snapping up properties in Vancouver. I sold a 50 years old rundown house for nine times what I paid for it in 1983 and took that money and spent a third of it to buy a very nice newish (10 year old) home 100 miles away from Vancouver. I was happy enough to move away since I enjoy nature and now live in a farming area with gorgeous views. In Vancouver I had no view. I was in an urban area that was going more and more upscale while people's salaries were fairly stagnant. It is an insane formula for putting people on a treadmill for life trying to "afford" modest housing.