Lu Han is a Petro-Canada Associate Professor of Business Economics. She says government should be "very cautious" about any policies it may adopt. (Ousama Farag/ CBC Toronto)

"Every policy is a signal to the public, " said Han.

For example, she says, rising interest rates could reduce housing demand, but also discourage business activities.

"How much they are going to react to policy actions is something the government wants to think about," said Han.

Potentially on the table, could be a foreign investment tax and a vacancy tax — something Mayor Tory recently said he supported.

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But again, Han suggested caution, saying what may have worked in Vancouver and other cities around the world may not necessarily stick in Toronto.

"I think we don't have enough statistics to jump to conclusions yet," she said.