Competition for Development Sites in Tokyo’s 23 Wards Within a 10-Minute Walk of a Station and Rising Prices

「The Group primarily seeks development sites in highly convenient and popular areas, including Tokyo’s 23 wards, Kawasaki and Yokohama. If it is unable to acquire land as planned because of competition with other companies or rising prices, this could affect the Group’s results.」

「The increase in total assets was mainly attributable to a ¥5,557 million increase in real estate for sale under development as a result of steady progress in purchasing well-located sites in central Tokyo.」

「Current assets at the end of the current consolidated fiscal year increased by ¥14,366 million from the end of the previous consolidated fiscal year to ¥53,747 million. This was mainly attributable to a ¥11,214 million increase in inventories resulting from progress in purchasing well-located project sites through the addition of land acquisition personnel and the development of younger employees while the challenging acquisition environment for condominium sites in central Tokyo continued, as well as active purchases of detached-house and apartment sites by 株式会社ケーナイン.」

「The increase in total assets was mainly attributable to a ¥9,029 million increase in real estate for sale under development due to active land purchases, while cash and deposits decreased by ¥1,249 million.」

「This was mainly attributable to progress in the purchase of well-located project sites by younger employees while the challenging acquisition environment for condominium sites in central Tokyo continued, as well as active purchases of detached-house and apartment sites by 株式会社ケーナイン, which became a subsidiary on 29 February 2024, resulting in a ¥2,149 million increase in inventories.」

「Active efforts to purchase development sites resulted in a ¥5,353 million increase in inventories, while cash and deposits also increased by ¥645 million.」

「The increase in total assets was mainly attributable to increases of ¥2,865 million in real estate for sale and ¥6,902 million in real estate for sale under development, while cash and deposits decreased by ¥2,212 million. These changes resulted from the company's efforts to actively, but selectively, acquire well-located properties in central Tokyo, where prices continue to rise, while implementing strict construction schedule management.」

「The increase in total assets was mainly attributable to a ¥9,438 million increase in real estate for sale under development as a result of actively acquiring well-located properties in central Tokyo despite the challenging acquisition environment, while cash and deposits decreased by ¥2,911 million and real estate for sale decreased by ¥1,672 million.」

「The increase in total assets was mainly attributable to a ¥5,158 million increase in inventories resulting from continued efforts to acquire development sites despite the challenging acquisition environment, while cash and deposits decreased by ¥2,478 million.」

「For these reasons, while low interest rate policies continue to support resilient sales, competition for well-located sites in central Tokyo is expected to continue on the acquisition side, and prices are expected to remain elevated.」

「The decrease in total assets was primarily attributable to a ¥790 million increase in inventories, resulting from efforts to acquire development sites despite challenging procurement conditions, and a ¥296 million increase in property, plant and equipment, mainly from purchases of income-generating properties, while cash and deposits declined by ¥1,271 million and corporate income taxes receivable declined by ¥374 million.」

「The increase in total assets was mainly attributable to a ¥1,025 million increase in inventories, resulting from continued efforts to acquire development sites even during the COVID-19 pandemic, while cash and deposits decreased by ¥468 million.」

「The decrease in total assets was mainly attributable to a ¥1,191 million decrease in cash and deposits and a ¥294 million decrease in inventories as the environment for acquiring development sites became more challenging, despite steady sales recognition.」

「The increase in total assets was mainly attributable to a ¥3,324 million increase in inventories following selective purchases despite the challenging environment for acquiring development sites, while sales recognition proceeded as planned.」

「This was mainly because, although few properties were recognized as sales, the company was able to acquire more development sites than the amount recognized as sales despite the challenging environment for land acquisition.」

「Despite the challenging environment for acquiring development sites, acquisitions progressed steadily during the cumulative period of the current quarter, while sales recognition remained weighted toward the second half as planned and the associated trade payables were repaid.」

「The decrease in total assets was mainly attributable to a ¥448 million increase in cash and deposits and a ¥2,387 million increase in real estate for sale under development, as the company was able to purchase 3 properties despite the challenging environment for acquiring development sites, while real estate for sale decreased substantially by ¥3,506 million amid strong sales recognition.」

「Acquiring development sites has become increasingly difficult due to major real estate companies returning to a Tokyo-centric strategy and entering the small-lot land market, as well as strong office demand and entry by the hotel industry.」

「Although Japan as a whole faces population decline, population inflows into the Tokyo metropolitan area continue. Against this backdrop, the real estate industry is eager to pursue further development, while the hotel industry's appetite for land acquisition remains strong as it rushes to respond to foreign visitors to Japan, whose numbers are expected to continue increasing after the 2020 Olympic and Paralympic Games. The company therefore recognizes that competition for development sites will continue.」

「In the real estate industry, the Group's business sector, financial institutions have adopted a cautious lending stance partly because real estate lending has exceeded bubble-era levels. Even under these conditions, land prices remain firm nationwide, while residential, commercial and industrial land prices in the Tokyo metropolitan area have risen for 5 consecutive years. This trend is expected to continue for the time being.」

「In the real estate industry, the Group's business sector, financial institutions have adopted a cautious lending stance partly because real estate lending has exceeded bubble-era levels. However, investment money is also flowing into the market, and land prices in the Tokyo metropolitan area continue to rise even under these conditions. This trend is expected to continue for the time being.」

「Even under these conditions, land prices in the Tokyo metropolitan area have risen for 4 consecutive years for residential land and 5 consecutive years for commercial land, according to benchmark land prices published by the Ministry of Land, Infrastructure, Transport and Tourism. Investment money benefiting from negative interest rates appears to be flowing into central Tokyo. Demand for commercial land, driven particularly by retail outlets and hotels benefiting from the increase in inbound tourism, is strong, and land prices are expected to continue rising for the time being.」

「Ahead of the 2020 Olympic and Paralympic Games, the hotel industry is targeting the increasing number of foreign visitors to Japan and has a strong appetite for acquiring sites under policies easing floor-area ratios for hotel sites. As competition for land acquisition between the real estate and hotel industries is expected to continue, land prices are expected to keep rising.」

「The hotel industry, targeting the continuing increase in foreign visitors to Japan ahead of the 2020 Tokyo Olympic and Paralympic Games, has a strong appetite for acquiring sites under policies easing floor-area ratios for hotel sites. As competition for land acquisition between the real estate and hotel industries continues, land prices are expected to continue rising for the time being.」

「Even under these conditions, land prices in the Tokyo metropolitan area continue to rise across residential, commercial and industrial land. Hotels targeting the continuing increase in foreign visitors to Japan ahead of the 2020 Olympic and Paralympic Games are still entering the market, and land prices are therefore expected to continue rising for the time being.」

「Land prices have risen sharply while official assessed road prices have failed to keep pace. At the same time, financial institutions have seen their net interest margins narrow following the introduction of negative interest rates, and real estate lending has exceeded bubble-era levels. Against this backdrop, lenders have increasingly adopted a cautious approach, selecting both borrowing companies and properties eligible for financing.」

「The Group seeks highly convenient and popular development sites, primarily in Tokyo's 23 wards, located within a 10-minute walk of a station. If competition with other companies or rising prices prevent the Group from acquiring land as planned, this could affect its performance.」