You’re talking about China, right?

The problem with falling house prices is for the people who recently purchased. Imagine buying a home for $500k and 1 year later you still owe $475k on it and it's only worth $450k.

Eventually people say fuck it, and declare bankruptcy to get over an upside down mortgage.

If enough people do that then the banks fail. If enough banks fail then there's cascading effects across the economy which can lead to mass layoffs, failing businesses, and other crises.

If collapse is what you want then yeah let then fall. But there's a lot more pain in collapse than you realize.

But alas, China isn't a true communist country. Just like many socialist country, their economy still relies on capitalism, and this issue is much more complex than say housing should be free, because the issue they're facing right now is there's way too many supply and there's not enough demand(or simply unaffordable).

Housing price falling might be a good news for people who's looking to buy one as their forever home, but beyond that, it will make upper-middle class and upper class people spending less as the mortgage they're paying doesn't match the housing price in the current market, which could have a cascading effect toward the economy as a whole. Another issue is, when the demand is too low and the housing development company stop their project, ten(or even hundred) of thousands of blue collar will also affected. Now suddenly a "good news" doesn't sound as good as it is. The article explain it better.

And i'm not even talking about the multimillionaires that can escape when they want to.

They fall because no one can afford them because they have huge unemployment problems