Decline in Housing Demand Due to Falling Real Wages and Expectations of Higher Interest Rates
First written in FY2023-Q2. 4 of 7 entries say "Materialised", first in FY2023-Q3. Latest entry: FY2025-H1.
Home Position moved to the "Worse" side of this theme in 2023, 3 years after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 36 of 51 companies on the "Worse" side.
13 other companies' latest entry also says "Restated".
- FY2025-H1RestatedAnnual report
「In the real estate industry in which we operate, various government measures supporting home purchases continue, but mortgage interest rates are trending upward, construction costs including building material prices and labor costs remain elevated, and the business environment remains uncertain.」
It continues to describe an upward trend in mortgage rates, but this filing does not directly state that higher interest rates are causing housing demand to weaken. - FY2024MaterialisedAnnual report
「The industry-wide excess inventory in the Tokai area and some suburban properties, which has continued from the previous fiscal year, was expected, as in the previous fiscal year, to be temporarily resolved toward the summer. However, excess inventory has persisted in some areas, delaying the recovery in selling prices.」
In some regions, the recovery in housing demand and selling prices has been delayed, and concerns about the demand environment have materialized in prolonged excess inventory, fewer sales and deteriorating profit. - FY2024-Q3RestatedAnnual report
「In the real estate industry in which we operate, various government measures supporting home purchases continue, but the business environment remains uncertain as construction costs, including building material prices and labor costs, continue to rise and signs of weakening demand have emerged in some areas.」
It continues to describe a situation in which housing demand appears to be weakening in some regions, but this filing does not indicate a direct causal relationship with real wages or expectations of higher interest rates ahead. - FY2024-Q1MaterialisedAnnual report
「In some suburban areas, the industry as a whole is experiencing a sense of excess inventory, and sales centered on suburban properties have been weak, resulting in year-on-year declines in revenue and profit.」
Weak sales of suburban properties have resulted in year-on-year declines in revenue and profit. This filing does not indicate a direct causal relationship with real wages or expectations of higher interest rates ahead. - FY2023MaterialisedAnnual report
「In addition to elevated construction costs resulting from the sustained high levels of raw material prices, logistics costs and outsourced labor costs in recent years, expectations of higher mortgage rates have also made future housing demand difficult to assess.」
It explicitly identifies an environment in which housing demand is difficult to forecast, amid surging construction costs and expectations of higher mortgage rates ahead. It also notes the increasing trend in completed inventories, particularly in regional areas. - FY2023-Q3MaterialisedAnnual report
「While construction costs, including building material prices and labor costs, continue to rise, demand has begun to show signs of weakening in some areas, creating a business environment in which the outlook is difficult to assess.」
The disclosure states that demand has begun to weaken in some areas and that sales were sluggish in regions where suburban properties are the main products. This filing does not indicate a direct causal relationship with real wages or interest rates. - FY2023-Q2First statedAnnual report
「In addition, demand has begun to show signs of weakening due to lower real wages and expectations of higher interest rates, creating a business environment in which the outlook is difficult to assess.」
The disclosure states that housing demand has begun to show signs of weakening against a backdrop of lower real wages and expectations of higher interest rates.