So, the reality was that Dream City's real estate market had a huge inventory. Second-hand homes were "priced but not selling," and developers stubbornly withheld supply, refusing to lower prices. However, sales data were dismal, and the industry's debt-to-equity ratio ranked among the highest in national prefecture-level cities.
The haphazard pouring of private capital, with nowhere else to go, had hastened competition in the real estate industry. This drove irrational hikes in housing prices, ultimately leading to an extremely high corporate debt ratio. Ridiculous, wasn't it? Actually, not at all.
Anyone with a bit of financial common sense knew that an oversupply of capital would inevitably bring intense internal pressure, leading to a vampiric surge forward and fueling the frantic operation of a Ponzi scheme.
Other cities reduced inventory by the month.
