Gnadenburg, I have owned property in London and have profited handsomely from it. I would never buy property here now unless I had money to burn.
Yields may go up when prices go down, but owning property only makes sense if it is set to rise in capital value within the period you're planning to own it for, at least on par with other forms of investment, or unless the risk of falling values is more than weighed up by the advantages of negative gearing.. For the latter to work you'd have to be pretty wealthy already..
Given it could take decades for values to recover after a practically unavoidable crash, I would seriously doubt it would make sense for 95% of the population at the moment to buy into the Aussie property market..