I don't know if I agree with this. If I buy a house, tune it up, then sell it after investing my own money and time, why should I be penalized for a full year before being able to sell it? If someone wants to buy that house they should be allowed to buy it, if I want to sell it I should be able to sell it, at whatever the deal is and the taxes are. The fact that the houses are being sold quickly tells you that the market is responding well. This type of change if anything will do the opposite of incentivizing the housing market. It also doesn't factor in that it is a person's investment, and sometimes those house flips don't go according to plan and the person is left taking a loss who tried to flip when the market isn't as hot.
Also, if I own 5 houses and rent them, why should I have to pay a penalty for working my way up the success ladder? Most people renting 5 houses aren't ultra rich or anything and likely worked very hard to get to that point. My mom was renting 3 houses out and we weren't rich at all. That just penalizes people who worked hard and made a lot of sacrifices to get there.
Even the foreign investor ban I don't like. Why purposely limit the economic growth of your country by banning investment money? If a foreign investor contributes X amount into the country's housing market, and houses are being bought all over, and residents are making lots of cash on their sales of their houses, that is not a negative.
Maybe I'm missing something but I'm really not feeling this one.