"The net yield of these houses is quite pathetic."
This is because of the generation long expectation that property prices will keep going up, i.e. rental yield was not relevant.
Give us another year or so of zero to 'negative growth' (loss) and one of two things will happen. The prices will fall faster or the price of rent will continue to increase beyond inflation.
Considering the cost of living, and the already very high rent prices (despite poor yield), the carbon tax and other labor govt gems, plus what looks like a recession in most of the economy, I'd say the prices of properties will be the one that moves down.
