[errantmind]

While this is true for supply, the same can be said about demand. Foreign investors drive prices up by seeing some other county's housing as an investment. If taxes were increased for these investors, or some other disincentive was in place, demand would fall driving prices down

[firecall]

This was certainly true in Australia. Where Chinese investors would get their money out of China and into Aussie real estate!

[silexia]

Investors don't park money in an asset where supply is increasing dramatically.