The US definitely had its fair share of housing developments that were basically real estate investment scams. Most of the endless suburban sprawl in California was developed that way. One of my favorite examples is California City. It’s still mostly empty and is located in the middle of the desert. Also if you ever watched the show Arrested Development, it was making fun of the people who ran these kinds of real estate scams.
What’s happening in China isn’t all that different. It’s just happening on a much larger scale given the population size and the kind of urban density China is targeting. That’s what I think is shocking to anyone not looking at numbers. Instead of empty blocks of houses you might get empty apartment buildings instead.