Whiterock Capital Partners Pty Ltd
Tel: +61 2 8211 2783
info@whiterockcapital.com.au
Level 31, RBS Tower
Fax: +61 2 8211 0555
88 Phillip Street, Sydney NSW 2000
Wednesday 20 May 2009
MEDIA RELEASE
RESIDENTIAL PROPERTY JOINS GOLD AS LAST REMAINING SAFE HAVEN –
GLOBAL FUNDS TARGET AUSTRALIA
Australian residential property has joined gold as a safe haven for investors disillusioned with equities and
terrified other assets will be eaten away as measures to combat the financial crisis prompt a spike in inflation.
"Speculators consider residential property to be boring. It is not a sexy story. But these days boring is
beautiful. Capital preservation is imperative and high returns come second." said Andrew Donnelly, Chief
Executive of global investment firm Whiterock Capital Partners.
"Residential has become more popular as it retains its value." Donnelly added.
Such fears have prompted many risk-averse investors to bet on gold, the price of which has risen over 42% in
the past year.
With diversification the golden rule of asset allocation, investors are looking elsewhere too.
Residential property is the highest performing asset class over the last 20 years returning nearly 12% in the 20
years to September 2008, closely followed by shares, which returned just over 11% over the same period.
"We still see a market that is extremely stable, especially when you look at the comparative price falls in the
US & UK," said Donnelly, whose firm advises institutional and retail investors on new development stock
investments.
"Australian residential is becoming increasingly attractive for institutions seeking long-term, low-risk cash
flows," Donnelly said. “We have been inundated by global funds and institutions wanting access to Australian
residential property assets. Investment firms across Asia, Europe and the United States are under pressure to
diversify their investment portfolios and residential property is the safe port in this financial storm.”
"It's back to basics, away from exotic products such as collateralised debt obligations or the securitisation of
anything that generates a fee. Stock market investors have a bloody nose. Investors want tangible assets like
residential property," Donnelly added.
What will happen to prices? “If you’re looking for the next hot spot ask your bookie,’ says Donnelly.
“Investors are
looking at the fundamentals of areas with strong infrastructure, population growth and
employment – that’s where the safe bet is in the coming years.”
"The fundamental case for residential property investment remains strong. The rental market has the lowest
vacancy rates in over 20 years and capital appreciation, resulting from the demand-supply imbalance in the
market, is attractive to investors," said Donnelly.
Further information: Andrew Donnelly 0450 925 911
NEWS 
