This means finally banks are forced to give loans on 'real' estate prices and not inflated, builder built prices. This is a good thing - in the short run, they will exert demand on rents and suffocate quite a few of us rent-payers. But over a year or two, prices should come down to realistic levels.
The govt can do better - put money into small towns and areas neighbouring cities - like NCR. That will reduce the pressure (but do it within the same states, not like NCR) and everybody can have decent houses in decent localities. Those going for luxuries can obviously pay for bigger, better houses.
