I like Tory but no taxes of any kind are needed.  Let the free market sort things out as it always does.  And if the market is indeed getting ahead of itself, well position yourself accordingly and you can profit from such an opportunity.  Until then renting is always an option or moving further away from the core into one of the many rapidly gentrifying neighborhoods or suburbs in the GTA.

And as to the sources of the demand I say bring on all that foreign capital from our sources.  We need it in Canada, badly.  Wealthy Asian buyers are a very positive force in this country.  Immigration of all kinds is needed to sustain our economy.  

The best thing that the government can do to ease the housing situation is to accelerate the development of new housing, particularly new rental housing.  That is the most equitable and effective way to ensure more Canadian residents can find housing.  More taxes are not the answer.  They are never the answer.