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Then they'll expend CO2 removing the abandoned structures, and building other things on top of some of that, and another bubble will be coming down the pipe sooner or later.
We need to fix the systems that let these bubbles occur in the first place
I recall a presentation by a key guy in China's planning system (NDRC-ERI) - it was clear that their plan all along was for the peak construction to coincide with the peak working-age population - which is why they would never concede to reduce emissions earlier. They had a long-term view including demographics (more than most governments consider), but the process got its own momentum and became the bubble - also related to city-government financing incentives as well as risky tycoons. Now the problem with such over-planning is that the next generation may not thank them for the legacy of this type of construction (and CO~2~), and prefer to live in smaller houses or away from the coast (as Shanghai, Tianjin, etc. will be flooded due to same CO~2~), hence as you say even more reconstruction (and more CO~2~). But the peak has passed, what really matters next is whether India will repeat similar mistakes.