Yes, developers can put whatever price they want as long as they can sell. After a crash, if launching prices then are unlikely to go below 700psf due to various reasons amongst them land cost or inflation or whatever, then sooner or later subsale supply will dry up as there are no cheap launching.How then can one lose if one were to buy at subsale price now? What is the downside of buying subsale now? I don't care whether those who buy at high prices from developers will suffer later but for those holding on to their poperties purchased through subsale, whats the risk?

It all depends on the entry price for that area. There is no blanket price range. You will only make money or lose money when you sell the property. As long as you have the holding power, it doesn't matter if property prices in your area drop 50%. Sooner or later prices will recover. Property prices are always in cycles. There will be up's and downs. The rule of thumb is never buy at the peak or just before a slump (which is now).

Right now, banks are very conservative in their valuations of property prices because nobody knows how bad the impact of the slump is gonna be. Nobody knows if prices will correct 5% or 25%. But areas with a glut of condo's will be hardest hit.