I like this idea. At this point, with China as the most obvious example, all nations' economies have become dependent on the real estate market as the bulwark of the financial sector. They have gone from using mortgages to underwrite all other speculation to using real estate itself for that purpose.

The real estate market might be allowed to deflate a bit from time to time, but it won't be allowed to pop. In democracies the necessary control is exerted by the private sector, via central banks. In undemocratic nations the banking system has become the primary means of societal control.

I strain to see a difference, but in either case creating money to sustain the price of real estate is nothing. With an infinite supply of money available to support it, that market can never fail.

A large (even if it were not 100%) tax on capital gains in real estate would close the loop, with money poured into that private market made available to society as a whole. One use of that tax money could be to subsidize housing, based on income relative to housing prices.