The problem is mathematical: the Chinese, using hypothecated, corrupt funds to purchase overseas property (and remember this is a deliberate plan by the Chinese government to penetrate Western nations) meets limited supply in Western cities. The population differential between China, and, say Canada is overwhelming. There is just no way any Canadian can compete with that. 

Governments have to put their own citizens first and also the needs of workers who actually require a place to live in cities first. As for holiday and investment properties, these could be in special zones of beauty: for example, establish new developments in currently undeveloped parts of Canada. Call it the 'Shining Lucky Red Lantern' holiday home development overlooking Hudson's Bay or some such.