Fluctuations in Land Prices and Housing Demand Driven by Economic Conditions, Interest Rates and Tax Policy
First written in FY2023. 3 of 6 entries say "Worsened", first in FY2024. Latest entry: 2026-10-09.
Home Position moved to the "Worse" side of this theme in 2024, 4 years after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 36 of 51 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- FY2025-H1WorsenedAnnual 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.」
The assumption that mortgage rates would remain low and rise gradually has been revised to explicitly state that rates are trending upward, increasing the risk of fluctuations in housing demand due to higher interest rates. - FY2024WorsenedAnnual report
「Although variable mortgage rates have remained low to date, they are expected to rise gradually as a result of the Bank of Japan’s monetary policy, and factors that could have either positive or negative effects continue to be intertwined.」
The assumption of a gradual rise in the previously low variable mortgage rates, driven by the Bank of Japan’s monetary policy, has been made explicit, increasing the risk that higher interest rates will weigh on housing demand. - FY2024-Q2Monitoring Changes in Interest Rate PolicyAnnual report
「Although variable mortgage rates remain at low levels, it is necessary to closely monitor future developments, including the impact on the industry of the central bank’s decision in March 2024 to end negative interest rates.」
While variable mortgage rates remain low, it identifies the impact of the central bank’s decision to end negative interest rates on the housing industry as a specific matter to monitor under the risk of fluctuations in housing demand due to economic conditions and interest rates. - FY2023First statedAnnual report
「Because the price of land acquired is susceptible to fluctuations arising from economic conditions and supply and demand in the real estate market, these trends could significantly affect the company’s land acquisition costs. Accordingly, the company recognizes that the possibility of this risk materializing and its potential impact are material. Individual customers, who are the company’s buyers, also tend to be susceptible in their willingness to purchase and demand trends to economic conditions, interest rates, tax policy and other developments. Depending on these conditions, the company’s operating results and financial position may be affected.」
It identifies as a separate risk the possibility that land acquisition costs and individual customers’ willingness to purchase may be affected by trends in economic conditions, supply and demand, interest rates and tax policy.