The underlying factor is 'what % of the total population' is able to afford the house they live in? Both Canada and Australia have CGT, but i'm sure Sydney & Vancouver only represent a small % of the total population in each country (and so be it were the top 1% are able to buy those places). When 33% of NZ's population live in Auckland region, then yes we have a problem. Vancouver might be only 1% of Canada. If you look at other major cities in Canada like Edmonton, Calgary, Quebec City, Montreal, even Ottawa, all have exceedingly affordable housing (the latter being the most affordable and Ottawa is gov't central, like Wellington govt). The only 2 real outliars are Vancouver and Toronto and I do believe a large part of that is more to do with Canada's approach multiple ways of taxation to discourage landlordism (if there's such a word?). When Jacinda made that landmark speech in March, the stats were staggering. Some 40% of ALL property transactions were made by those who already owned multiple houses. 15,000 houses were purchased by those who already OWNED 5 OR MORE houses!!! Shocking if you ask me and well beyond the realm of things when you compared to Canada. The critics got it wrong in their reporting. Like which came 1st, the egg or the chicken... people's behaviour dictates first - they're always going to go for the tax free capital gain which is still the best game in town in NZ. In Canada or in the US, the best game in town to get rich is owning shares through retirement savings (for which in NZ have nothing except the dismal Kiwi Saver). No TFSA/IRA no RESP / Education savings plan. No Disability savings plan (which all of these grow 100% tax free and not limited to only domestic stock exchange).
https://www.youtube.com/watch?v=JwoImm6FgCM
Things are not fair and the fairness is easily judged when you look at other countries. The middle class NZ resident with Kiwi Saver will have less of a portfolio at retirement than the Cdn or US resident investing in the same shares. Corporate taxes are lower in Canada & US than in NZ. Income taxes are lower there too. The Vancouver home of similar value to the Auckland home, will be larger, more comfortable, better in every way than the Auckland home (so if you want to go and compare things like cars - you need to look at apples vs apples). There no Toyota Corolla that ends up being better in Canada than in NZ ; but on the issue of houses and standard of living - then there's a clear difference. The low interest rates set by central banks over the past decades are not the cause - the OECD has set it clear that NZ houses have ran away in terms of affordability and you can't simply put it down to low mortgage rates. Again, blame the behaviours of landlordism.