The problem is China has been developing at a ridiculous pace.
Remember a few years ago when everyone was laughing at China for building entire empty cities? Those cities got
filled; they were correctly predicting a massive rural-to-urban shift and pre-built to accommodate that shift.
https://www.bloomberg.com/news/featu...tricts-fill-up
Pudong was the first "ghost city", and it's pretty successful at the moment.
Also, there is a truly ridiculous amount of money being made in China. There's more rich people in China than in America, right now;
https://www.theguardian.com/business...richest-people
That's obviously a little out of scale, as we're not factoring in China's overall larger population and talking in per-capita terms, but there's a
lot of wealth being made there, millions of people who can afford the prices you're listing. You're also talking Shanghai near the town center; if you look at Manhattan prices, they'll be sky-high too.
The Evergrande thing is a consequence of this rapid development and enrichment; things are changing so rapidly that there's very little margin to be had around the edges; developers are overextending to keep pace with demographic shifts, and that involves a
lot of relatively short-term (next ~5 years or so) planning and major shifts in that progression can cause
huge problems.