This is not big deal.   Across the street from me here in South Surrey folks paid $1.2 demolished the small home and build about an $800 or more house on it.   Package is now over $2. million and this is not uncommon.

Even with the 15% foreign buyers tax  the prices have not dropped all that much.   Volume yes but prices not so much.  The foreigners just moved to another city and bought.   Moved the problem 

The foreigners were not only Chinese but Indian, Yanks, Germans, Brits and others.  My new Chinese neighbors are great and would like to have more of them.   Hard working and really contributing to the Province.
Cannot say that all of them are the same but the ones I know are.