"The Deals Are Collapsing" - Vancouver's Housing Bubble Has Burst
The government created this housing bubble by limiting land available for development, in a country which is all land an pretty much no people. This was an obvious form of insanity. So once the price of housing began to rise at Ludicrous Speed, the government panicked, and acted to hit the brakes. I do not know if this will result in a serious collapse, but it very well could. There are many other places in the US, even on the West Coast which have homes which would suit Chinese buyer's needs.
I suggest taking a wait and see attitude, but I suspect this has significantly altered the housing price market in Vancouver, BC. It is always a bad idea to allow the local government power over land prices through urban growth boundaries, zoning and other similar mechanisms. The politicians, and the bureaucrats have no idea what they are doing, and giving them this power will nearly always result in a bad to terrible outcome.
Let's hope this law permanently drives down the price of housing, and then the Vancouverites take back control of their land use rule from the politicians, and bureaucrats. Don't worry I am not holding my breath.
The Vancouver housing market is unique it only responds to demand, not supply!
The Vancouver housing market is white hot: Collapse is imminent