My current beief is that there is going to be a sharemarket correction (downturn) next year and the investors will start to move into property to pick up the defaults (reposessions) and with low vaccancy rates will drive up the rents in the low end of the market.
With the property prices I see the bottem end of the market to be stagnet with good rent returns. The mid level suburbs have very good capital growth but stagnet rent returns.
Interest rates do not affect the investor as much as the owner occupier as the investor claims tax deductions on the interest chattels etc...so this will, I believe, lead the investor into the property market.
This is just an educated guess....with emphasis on the guess.
