As for how something like this could possibly be sustained, your guess is as good as mine. There is so much unsustainable activity being undertaken here and just about everywhere else in the world, with everyone simply turning a blind eye because of the good times in the here and now. I think the central Chinese government is more far-sighted than that, but they have a hard time controlling local governments who have vastly different concerns and incentives, and they are unwilling or unable to make the political reforms necessary to combat the problem.

So if “the only direct way for local governments to make money off of real estate is through one-off sales of land to real estate developers”, how long could this possibly be sustained? Are there cities where the supply of land yet to be privatized is running low?