"There are a lot of things I don't understand about China's economy, and every time I think I might have a handle on it, I come across juicy tidbits like these ones:"
Every tidbit you state is fully explained in the article's explanation of the lack of investment vehicles for middle and low income Chinese. When your bank account has a negative real interest rate, then real estate becomes a great vehicle for it, provided there is no crash. I suspect that the lack of non-government media in China causes many of the investors in these properties to have no idea that they sit dormant.
Every tidbit you state is fully explained in the article's explanation of the lack of investment vehicles for middle and low income Chinese. When your bank account has a negative real interest rate, then real estate becomes a great vehicle for it, provided there is no crash. I suspect that the lack of non-government media in China causes many of the investors in these properties to have no idea that they sit dormant.