They still are building new real estate at rapid rates even though the growth of their major cities isn't keeping up. If this continues they will have tons of unsold properties that will drag the economy down quickly. When they lose the real estate growth their gross domestic product will plummet.
The signs we're seeing from China are very familiar. Credit is less available, and as a result some developments aren't happening at all and others aren't being finished. Where the developments are happening, people are less able to afford to buy. If this continues, China could very well slide into the situation we see in other countries.
Yes, I do believe that the real estate problems that are being experienced by China will pose a threat to its economic growth. Housing and shelter are important factors for life in any country, and the ownership of a home also affects social status. The lack of these could affect both quality of life and likelihood of being hired, both of which in turn affect economic growth.
As the economy in China continues to grow so does the financial opportunity for its citizens. The Chinese have invested in foreign real estate assets for a very long time and will continue to do so. Many Chinese companies now hold foreign real estate as either an investment or a piece of corporate infrastructure. China will not be greatly affected by changes in their real estate market whether positive or negative at this time.