Indeed family housing may evaporate entirely - in its stead, blocks upon blocks of townhouses with small patches for yards (a real travesty when public parks are not protected as safe spaces for everyone's use), and still price tags of $700,000 or better.
Is that bad though? We need to encourage densification in the city than continue urban sprawl out to the west shore and other suburbs. I'd rather have a $700k townhome near to town that I can afford vs a $1.5mm SFH that I cannot. SFHs, at least in city cores are a terrible use of space, and I think townhomes should be the norm rather than being seen as tearing Victoria to shreds. Sure, many of us grew up in them, and still live in them now. It's what we're used to. Although when you look at cities worldwide, the idea of a SFH is a bit of an outlier outside North America.