"Foreign investment is flocking here because we have a stable government, the rule of law and they can pile their money (ill-gotten or otherwise) into a great investment that they know will only go up."

This sounds like the typical American exceptionalism but it applied to many countries.

"because our property taxes are based on housing prices, so there’s little incentive to curb price escalation."

Complete nonsense. The mill rate times house value gives the property tax. If everyone's house goes up equally, the mill rate goes down - no effect. 

The real reason that tax haven money flocks here is because it is easy to buy anonymously through shell companies and pay no tax on the gains. It is a great way for tax evaders to "dine and dash" and our tax system does nothing to curb real estate speculation or collect taxes owing.

Both foreigners and wealthy Canadians benefit from this weakness. That is why there is so little REAL investment here anymore and no impetus for change.