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Yes, fair enough. However the bigger cause of home prices being driven up is due to free/cheap credit; I'm not saying foreign investment doesn't play a part, but it is not the driving force causing prices to shoot up in the past (though it makes a fantastic news story). If you want to fix this problem, jack up the property tax on everybody buying property that is not as a primary residence, not just for foreign buyers.
The other side, if cities lose their property tax and property transfer tax income, they operate on a lower budget, can't pay to maintain infrastructure and social services, and locals will still leave. So really, keeping the status quo, at least politicians can claim that the economy is looking 'good'
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