That is an extremely oversimplistic statement.
Supply and demand are each influenced by multiple factors including tax policies, interest rates, immigration policies, possibly anti-money laundering policies (or lack thereof), social benefit policies, land development policies, transportation options, jobs, incomes, technology (i.e., airbnb, work from home options), trends (i.e. everyone's belief that RE will continue to increase or FOMO), etc. Many of those factors are currently and/or could be influenced by government policies.