I have been confused by the situation for a long while now. Still don't have the answer. None of the answers seem rational and convincing. Seems all right yet none of them are really right.
Take the demand, for the last few years and even for right now, people buy flats in big cities all expect the value will go up rather quickly. Will these expectation hold true long term from now no? How many will still buy if being told the values won't go up that dramatically or even slight lower in the next 5~10 years, will everyone still buying?
Say whatever you want, the properties values CAN'T just go up in 20% a year, year after year. IMPOSSIBLE, can't sustain, NOT going to happen.
My point is the demands are still there, but these are 'false' demands.
