Strategy of Development Business

We will construct apartments in areas with high demand, offer high-quality, high-value-added products and services, and diversify construction order mix

New housing starts of leased units has increased for two consecutive years (up 11.4% year-on-year), due to the prolonged period of low interest rates and strong demand for apartment construction as a strategy to reduce inheritance taxes. On the other hand, the number of vacant houses continues to increase. We will construct apartments in areas with high demand, offer high-quality, high-value-added products and services, and diversify construction order mix.

Centralization of construction area

We will focus on supplying apartments in metropolitan areas where solid leasing demand is anticipated, supported by an increase in population. In addition, we will provide a high-quality and high-value-added products and services.

Diversification of construction

We will expand construction variations based on"ideal land use". We have divided the three metropolitan areas, and will construct not only apartments but also elderly care facilities and commercial facilities.

Increase in labor and materials costs is expected, but will be offset by separation of construction material orders and utilization of overseas personnel

Increase in construction costs and labor costs are anticipated, from an increase in construction demand ahead of the 2020 Tokyo Olympic & Paralympic Games, in addition to the diversification of construction. In our development business, we will accelerate apartment supply in Tokyo metropolitan areas where high profitability is expected, and will reconsider suppliers and separation of construction material orders to cut costs. In addition, we are accepting apprentices from Vietnam.

Numerical targets

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