There are lots of reasons for high demand for housing, but high demand for housing only becomes an issue if the supply doesn’t keep up, which it hasn’t for a few decades.
Lack of housing is just one of the factors. You still have foreign investors, huge booming industry, naturally desirable living region etc...Building a ton of housing is obviously going to help but the property value for the current places aren't going to drop because of it (they'll still go up). Vancouver is a good example. Owning property is ridiculously expensive but renting is affordable because of all the apartment complexes that keep springing up.
I doubt prices will go down until there’s a large drop in demand, but we can certainly build a lot more housing to stabilize prices