Declining Real Estate Yields and Tighter Lending by Financial Institutions
First written in FY2016. 9 of 17 entries say "Restated". Latest entry: FY2025.
Intrance moved to the "Worse" side of this theme in 2018.
0 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Although overseas investors continue to show strong interest in Japanese real estate and both supply and demand remain firm against a backdrop of continued low interest rates and the weaker yen, the situation continues to require caution, including because higher land prices and construction costs are driving up real estate prices.」
While recognizing strong investor interest and firm supply and demand, the disclosure identifies higher real estate prices resulting from surging land prices, construction costs, and other costs as an additional factor requiring caution in the acquisition environment. - FY2025-H1WorsenedAnnual report
「Meanwhile, the market also contains unstable factors, including expectations of higher domestic interest rates in the near term and weak performance by the TSE REIT Index due to concerns about rising interest rates.」
While stating that real estate prices and financing conditions are favorable, the disclosure identifies expectations of higher domestic interest rates and weak performance by the TSE REIT Index amid concerns about rising interest rates as new sources of instability. - FY2024-Q2RestatedAnnual report
「Meanwhile, in the real estate industry in which the Group operates, investor appetite remains strong against a backdrop of still-low financing costs, although the market is affected by higher housing prices resulting from surging material costs and weaker consumer sentiment due to higher prices, and the real estate market has generally remained firm.」
While recognizing the downward pressure from surging material costs and higher prices, the disclosure reconfirms its view that the real estate market remains generally firm against a backdrop of low financing costs and strong investment appetite. - FY2023-Q2RestatedAnnual report
「Against this backdrop, in the real estate industry in which the Group operates, investors' appetite for property acquisitions has remained high and the real estate market has remained firm against a backdrop of favorable financing conditions under a low-interest-rate environment.」
The disclosure reconfirms its view that strong investor appetite for property acquisitions, against a backdrop of low interest rates and favorable financing conditions, has supported a firm real estate market. - FY2023-Q1RestatedAnnual report
「In the real estate industry, investors' appetite for property acquisitions has remained high against a backdrop of favorable financing conditions under a low-interest-rate environment, and the market has remained firm.」
The disclosure recognizes low interest rates, favorable financing conditions, and strong investor appetite for property acquisitions, reconfirming the existing description of the real estate market environment. - FY2022-Q3RestatedAnnual report
「In the real estate industry in which the Group operates, investors' appetite for property acquisitions has remained high against a backdrop of favorable financing conditions under a low-interest-rate environment. However, the situation continues to require close monitoring because of heightened uncertainty throughout society resulting from COVID-19's transformation of the social environment and lifestyles.」
While recognizing low interest rates, favorable financing conditions, and strong investor appetite for acquisitions, the disclosure reconfirms that the situation requires close monitoring because of uncertainty throughout society caused by the pandemic. - FY2022-Q2RestatedAnnual report
「In the real estate industry in which the Group operates, investors' appetite for property acquisitions by domestic and overseas investors has remained high against a backdrop of favorable financing conditions under a low-interest-rate environment. However, the sharp increase in uncertainty throughout society resulting from COVID-19's transformation of the social environment and lifestyles has affected decision-making, leading many entities to adopt a wait-and-see stance, and the situation continues to require close monitoring.」
While recognizing low interest rates, favorable financing conditions, and strong investor appetite for acquisitions, the disclosure reconfirms that many entities have postponed decision-making because of uncertainty caused by the pandemic. - FY2021-Q3RestatedAnnual report
「In the real estate industry in which the Group operates, investors' appetite for property acquisitions by domestic and overseas investors has remained high and the market has remained firm against a backdrop of favorable financing conditions under a low-interest-rate environment. However, many entities have postponed decision-making and adopted a wait-and-see stance due to heightened uncertainty caused by COVID-19, and the market may fluctuate depending on the future spread of infections.」
While stating that low interest rates and investors' appetite for acquisitions remain firm, the disclosure continues to note that the pandemic has caused decision-making to be postponed and that the market may fluctuate. - FY2021-Q2Added the possibility of lower office demandAnnual report
「However, demand for office buildings could decline if satellite offices and remote work accelerate amid the COVID-19 environment, and the real estate market could fluctuate depending on future developments related to COVID-19.」
The disclosure identifies a decline in office-building demand if satellite offices and working from home accelerate during the pandemic as a new market risk. - FY2021-Q2WorsenedAnnual report
「In the real estate market in which the Group operates, the activity index for the real estate transaction and brokerage industry has fallen sharply, mainly because decisions to purchase were postponed due to requests to refrain from going out and from operating businesses to prevent the spread of COVID-19. Real estate acquisition value has also declined sharply, as many entities, including J-REITs and foreign-affiliated corporations, are presumed to have postponed decisions and adopted a wait-and-see stance because due diligence and negotiations on properties have been impeded to prevent infections and uncertainty about the outlook has increased.」
The activity index for the real estate transaction and brokerage industry and real estate acquisition value fell sharply as outings and business operations were curtailed and decision-making was postponed, demonstrating a deterioration in the acquisition environment. - FY2021-Q1WorsenedAnnual report
「Real estate transaction volumes in April and May 2020 fell sharply year on year because decision-making was delayed by restrictions on movement and requests for self-restraint against the backdrop of the spread of COVID-19, as well as by uncertainty about market conditions. The real estate market may undergo significant fluctuations going forward.」
The disclosure notes that real estate transaction volumes in April and May 2020 fell sharply year on year due to restrictions on movement, self-restraint, and uncertainty about market conditions, and that the market may undergo significant fluctuations. - FY2019-Q1RestatedAnnual report
「In the real estate market in which the Group operates, the acquisition environment has remained challenging, with transaction prices for high-quality real estate staying high in anticipation of the consumption tax increase. However, official land prices in both residential and commercial areas in the three major metropolitan areas rose on average, continuing the trend from the previous year.」
The disclosure reconfirms its view that prices for high-quality real estate have remained high and that the acquisition environment has continued to be challenging. - FY2018WorsenedAnnual report
「In the real estate market in which the Group operates, the acquisition environment has remained challenging, with transaction prices for high-quality real estate staying high in anticipation of the consumption tax increase. However, as low-interest-rate policies are expected to continue in fiscal 2018, demand for real estate investment by domestic and overseas investors is expected to remain strong.」
While stating that investment demand remains strong against a backdrop of low interest rates, the disclosure specifically notes that prices for high-quality real estate have remained high and that the acquisition environment has continued to be challenging. - FY2018-Q3WorsenedAnnual report
「In the real estate industry in which the Group operates, financing conditions have remained favorable and investors' appetite for real estate purchases has remained strong against a backdrop of low interest rates and other factors. However, investment yields, particularly for office buildings in central Tokyo, have continued to decline further.」
While stating that financing conditions and investors' appetite for purchases are favorable, the disclosure specifically notes that investment yields, particularly for central Tokyo office buildings, have declined further. - FY2018-Q2RestatedAnnual report
「In the real estate industry in which the Group operates, funds have continued to flow into the real estate market against a backdrop of financing conditions including the Bank of Japan's continued negative interest-rate policy, and demand for real estate investment by domestic and overseas investors is expected to remain strong.」
The disclosure reconfirms its view that investment demand will remain strong against a backdrop of the continued negative interest-rate policy and inflows of funds. - FY2017RestatedAnnual report
「The Group's performance may be affected by financial conditions, including future interest-rate increases, lower investment yields caused by rising real estate market prices, and tighter lending standards at financial institutions for real estate acquisitions resulting from financial contraction.」
The disclosure reiterates the acquisition-environment risks of higher interest rates, lower yields, and tighter lending standards at financial institutions. - FY2016First statedAnnual report
「A decline in investment yields resulting from rising real estate market prices, financial contraction, or tighter lending stances by financial institutions toward real estate acquisitions could affect the Group's operating results.」
The Company identifies lower yields and financial contraction as risks that could worsen the environment for property acquisitions.