Changes in raw material and construction material prices, land prices, interest rates and taxation

「In the next fiscal year, an uncertain outlook is expected due to rising crude oil and naphtha prices resulting from escalating tensions in the Middle East and the impact on delivery times for petrochemical products. The impact on social and economic conditions is also expected to be significant due to rising land prices, labor costs and other personnel expenses, as well as continued increases in various interest rates.」

「継続する各種物価や金利の上昇、直近においては、緊迫化する中東情勢による各種エネルギー価格の上昇、石油由来品の高騰、供給停止等、景気の先行きは、引き続き不透明な状況が続いております。」

「The housing industry also faced an uncertain outlook due to persistently high material prices and tight labor supply and demand. Mortgage rates also continued to trend upward.」

「In the housing industry, published land prices in March 2025 rose 2.7% year on year on a nationwide-average basis and 4.3% in the 3 major metropolitan areas, with both residential and commercial land prices rising for the 4th consecutive year. Mortgage rates also continued to trend upward, while persistently high material prices and surging labor costs left the outlook uncertain.」

「The housing industry is expected to continue facing an uncertain outlook due to the significant impact of persistently high steel and construction material prices, rising land prices, the rapid depreciation of the yen, and the upward trend in interest rates following the lifting of negative interest rates.」

「Land prices also rose 2.3% year on year on a nationwide-average basis according to the March 2024 published land prices. The rate of increase was the highest in 33 years, since the bubble era, leaving the outlook uncertain.」

「During the first quarter of the fiscal year under review, Japan's economic and social activity continued to recover following the reclassification of COVID-19 as a Category V infectious disease in May 2023. At the same time, raw material and logistics costs continued to rise due to higher resource and energy prices and labor costs, resulting in continued upward trends in both corporate and consumer prices, with the outlook remaining uncertain. In the housing industry, accommodative monetary policy continued and mortgage rates remained low, but land prices rose for the second consecutive year on a nationwide-average basis according to the 2023 official road prices and published land prices. Housing material prices also continued to trend upward, leaving the outlook uncertain.」

「In the next fiscal year, the impact on economic conditions is expected to be extremely significant due to surging steel and construction material prices, resource prices including crude oil, the corporate goods price index, and the upward trend in land prices. The outlook is also expected to remain uncertain regarding the impact of mortgage rate trends on housing supply and demand.」

「At the same time, the outlook remained uncertain due to supply chain disruptions and higher raw material and logistics costs resulting from the rapid depreciation of the yen and rising resource and energy prices. In the housing industry, although accommodative monetary policy continued, mortgage rates were trending upward and housing material prices were also rising, with the outlook remaining uncertain.」

「During the fiscal year under review, Japan's economy was significantly affected by social and economic disruptions caused by COVID-19, which continued to spread through the sixth wave, supply chain disruptions caused by semiconductor shortages, and the sharp increase in timber prices known as the wood shock. In addition, the invasion of Ukraine by Russia caused further sharp increases in resource and commodity prices, including crude oil, leaving the economic outlook more uncertain than ever before.」

「The housing industry also faced an uncertain outlook for future housing demand due to the wood shock's impact on persistently high timber prices, the upward trend in steel prices, and the effects of revisions to mortgage tax deductions.」

「In addition to market trends relevant to its business, the Group's operations are affected by changes in raw material and construction material prices, land prices, interest rates, housing taxation and the consumption tax rate, as well as employment conditions. Uncertainty in external factors may affect the Group's operating results and financial condition.」

「In addition to market trends relevant to its business, the Group's operations are affected by changes in raw material and construction material prices, land prices, interest rates, housing taxation and the consumption tax rate, as well as employment conditions. Uncertainty in external factors may affect the Group's operating results and financial condition.」

「In addition to market trends relevant to its business, the Group's operations are affected by changes in raw material and construction material prices, land prices, interest rates, housing taxation and the consumption tax rate, as well as employment conditions. Uncertainty in external factors may affect the Group's operating results and financial condition.」