The other problem I see is the number of foreign Chinese investing in our real estate markets.
Foreigners outspend locals on Queensland residential property in 2011: http://www.news.com.au/money/property/foreigners-buy-up-big-in-property/story-e6frfmd0-1226233699813
Colliers International says 32% of foreign investors are Chinese, spending $106.8 million in Queensland alone. (Up 50% for the year.)
If Chinese Foreigners stop investing in Australian Real Estate because, well houses can and do go down, then we have quite a hole in demand we have to plug! This comes at a time when mortgage approvals for Aussies are at lows not seen for decades.
