Keith,
Short answer, no, I'd probably consider a different asset category.
I always look at the demand/supply situation when buying an asset and the residential property market in Australia is supported by an ever-growing population which also supports the demographic mix of the population. In this environment, a well positioned property on prime dirt can only appreciate over time as more national wealth is created and more people aspire to that dirt. Otherwise, price appreciation would be limited to inflation rate type returns to reflect the replacement cost of the residence. Or, in a declining population, the value of the dirt depreciates as populations move away. Look at the Michigan type example.
So long as our country is growing economically by virtue of our geographic positioning in the Asia region alongside rapidly expanding nations who require our natural resources, then we will be in good shape. But you need to pay attention to the big picture as the ageing population poses a risk if coupled with slowing population growth.
Its a great asset category to invest in, but it is the demand/supply fundamentals that underpin its strength.
Cheers,
Michael