Not Really

  A Housing Bubble only occurs after the money supply that was used to encourage housing spending comes to an end. Meaning the government who controls the money supply refuses to release any more money. As long as liquidity remains a constant, housing prices and construction will continue to expand. Since more money chases after a finite supply of housing.

  If there really is unused housing, the government can manage a few things. It can choose to subsidize housing by giving these homes away for free for those who still dont own property. The government can choose to purchase them at a profit to the seller or choose to purchase them at a loss to the seller. The government can then redistribute the housing at a profit to itself, or at a loss to itself. Its a moral decision, rather than a financial one. This is because PBOC has an infinite supply of RMB as recently stated. So its inconsequential what the Chinese government chooses to buy. Whether its concrete buildings, or steel warplanes.

 As individuals, our spending habits often require us to balance budgets. We are constantly shifting between paperwork to determine what we should or should not spend so as to remain within our own means. For the central government. It is a very different game. It does not need to look to see where it lands. The Central government is not a player, the Central government is the game master.