I don't believe the government needs to add any further regulations but perhaps better enforce ones we have. Personally I am already a bit uncomfortable with a foreign buyer's tax. After all, Canadians buy vacation property in the US and other locales all the time.

I suspect. But don't have any data, that there are a large number of people are avoiding capital gains tax by inappropriately claiming income or vacation property as a principal residence. 

There are a few simple approaches that can be triggered through land transfer to catch many of these fraudsters.