Something triggers the sell off, and then, priced at the margin, everyone ends up on a panic as the "value" slips away. In this case the trigger is a liquidity squeeze on SMEs, interestingly enough.
Scrambling To Sell Properties: Wenzhou Edition
[Wenzhou] produces many real estate speculators who have been buying properties everywhere from their home town to Hong Kong, and probably even Dubai and others. Now in their home town, however, they are scrambling to sell their real estate holdings.
NBD reports that the rush to sell started probably two weeks ago. The selling pressures started from two groups of people: cash-strapped speculators, and cash-strapped business owners
Many business owners are also selling properties to save their own businesses as bank credit are very tight, and non-bank credit has very high cost, so selling properties would be a better choice. One real estate broker said that a business owner is selling a RMB80 million townhouse, and 2 days ago the owner of this house told the broker that because his company needs cash urgently, and as bank loans have not been approved, he was willing to cut price by RMB5 million if there are a ready buyer.