SG Real Estate: IIFL has a real Estate Report. Note that developers are still trading at average 1.2x P/B. well above their previous down-cycle multiple of 0.5x. Estimate that developers’ share prices are already pricing-in 0-20% decline in home prices in 2011 and stock prices may fall by another 5-10%, given weak volumes and possible softening in home prices over the next 2-3 qtrs…..
Continue to prefer retail over office and residential. Top picks are CapitaMalls Asia (ADD, TP $2.24) and CapitaMall Trust (BUY, TP $2.43). Top sell pick is City Development (SELL, TP $10.49).
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