From office to residential We assume coverage of the Singapore real estate sector, calling for a switch from office stocks to residential developers. It might appear counter-intuitive, but we believe the best time to buy office and residential stocks is when prices are still falling and expectations of such movements have largely been priced in, and vice versa. We upgrade both CIT and WINGT from Hold to Buy and downgrade CCT from Buy to Hold and SUN from Hold to Sell.
We have also recalibrated our recommendations for the sector, downgrading AREIT, OUEHT and KPLD from Buy to Hold and upgrading CT from Hold to Buy. Our top picks are CapitaLand, City Developments and WingTai Holdings.
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