Some growth is real, some is embellished. Their situation is difficult as they must deliver on the promise of growth and prosperity because citizens have sacrificed much in return for the promise of future prosperity. If things slow too much, there is higher potential for civil unrest which could provoke more authoritarian responses in a negative feedback loop.

While longer term much of the infrastructure development will likely have been needed a great deal of it is overkill for current needs. The West is more accustomed to boom/bust cycles to which China is learning are part of an economy as it moves toward more free flowing capitalism.

More specifically though real estate in Shanghai could be due for a serious correction as are many other of the markets that have experienced the most egregious appreciation over the last decade. Higher rates will eventually (inevitably) flesh out the bubbles.