I wouldn't be too worried about a flood into the market, a lot of weary property investors tired of poor yields and low growth have taken advantage of the recent price growth and reducing holdings to pay down debt or free up capital for other projects. It hasn't hurt prices.
Don't forget that pre GFC a lot of foreign ownership of Australian property was in the hands of the US and Great Britain, both of which were far worse affected by the GFC than we ever were (so far), and comparatively speaking our property prices held steady against theirs.
Horses for courses, property is a great wealth creator, but entry price and yields are vital and at the moment, wouldn't touch it.
