I believe that the Vancouver real estate market was also affected by overseas investors in a similar way, making it the least affordable housing market in North America.
I think the real culprit was mortgage rules that let Canadians borrow cheap money for long periods plus need for all people (not just foreigners) to engage in real estate speculation. Ever since the Canadian federal govt tightened up the mortgage rules the market has been in a slump. But everyone loves to blame the overseas investors. Also people like to cherry pick parts of Vancouver as indicative of the foreign buying trend like the West Side, British Properties and Richmond but they fail to look at East Vancouver, New Westminister and Burnaby which has decent housing as well, but is not as desirable.
Edit: I'd also like to point out that some properties are priced high, but no one is buying them. It's also a seller's perception of a hot market that drives up prices.
I think the real culprit was mortgage rules that let Canadians borrow cheap money for long periods plus need for all people (not just foreigners) to engage in real estate speculation. Ever since the Canadian federal govt tightened up the mortgage rules the market has been in a slump. But everyone loves to blame the overseas investors. Also people like to cherry pick parts of Vancouver as indicative of the foreign buying trend like the West Side, British Properties and Richmond but they fail to look at East Vancouver, New Westminister and Burnaby which has decent housing as well, but is not as desirable.
Edit: I'd also like to point out that some properties are priced high, but no one is buying them. It's also a seller's perception of a hot market that drives up prices.