Xinhua published an article discussing what the situation of a collapsed real estate market in China would look like.
According the the article, “The so-called collapse of the real estate market refers to a sharp decline after a period of surging prices.” The article predicted that the housing market will decline by 30 to 50 percent. There will be far fewer buyers. Real estate will plunge into depression and even the national economy will stagnate. Banks will incur large amounts of bad debts. The article described a three stage collapse in the real estate market: housing prices will drop dramatically; after a huge rise, the stock market will plunge sharply; the number of real estate transactions will decline.
Source: Xinhua, March 11, 2014