Concerns over rising construction costs and the condominium supply-demand balance
First written in FY2017-Q1. 21 of 39 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2027-H1.
Kose R.E. moved to the "Worse" side of this theme in 2016, 4 years before the typical company in this theme (2020).
The whole theme swung hardest in 2022: 12 of 22 companies on the "Worse" side.
9 other companies' latest entry also says "Restated".
- FY2027-H1RestatedAnnual report
「In the for-sale condominium industry to which our group belongs, construction costs have remained high against a backdrop of rising land prices and persistently high construction-material prices and labor costs, and condominium selling prices continue to trend upward. Meanwhile, rising mortgage rates and higher household burdens due to elevated prices have made customers increasingly cautious in making purchasing decisions, and it remains necessary to closely monitor market conditions.」
The high level of construction costs and higher selling prices due to land prices, construction-material prices and labor costs, as well as customers' increasingly cautious purchasing decisions due to mortgage rates and elevated prices, were reaffirmed. - FY2026RestatedAnnual report
「Construction-material prices remain elevated, and labor costs continue to rise due to labor shortages. Construction costs therefore remain high, making it necessary to raise selling prices. In addition, there are concerns that rising mortgage rates will increase customers' housing acquisition costs.」
Concerns were reaffirmed regarding elevated construction costs due to construction-material prices and labor costs, higher selling prices, and increased customer burdens due to rising mortgage rates. - 2026-03-12RestatedEarnings
「In addition to persistently high building material prices, labor costs continue to rise due to labor shortages. Construction costs therefore remain high, making it necessary to raise selling prices. In addition, concern remains over the increase in customers' housing acquisition burden resulting from higher mortgage rates.」
Persistently high construction costs, rising labor costs and the burden on customers from higher mortgage rates continue to be identified as risks. - FY2026-H1WorsenedAnnual report
「In the for-sale condominium industry to which our group belongs, construction costs remain elevated against a backdrop of surging land prices and persistently high construction-material prices and labor costs, leading to higher condominium selling prices. In addition, mortgage rates have been rising gradually following the Bank of Japan's shift in monetary policy, raising concerns about increased customer burdens and the impact on purchase sentiment.」
In addition to persistently high construction costs due to land prices, construction-material prices and labor costs, the impact of higher mortgage rates following the Bank of Japan's shift in monetary policy on customer burdens and purchase sentiment was explicitly identified. - FY2025WorsenedAnnual report
「In the for-sale condominium industry to which our group belongs, in addition to elevated land prices, construction costs have surged due to higher construction-material prices and labor shortages. Higher housing acquisition costs resulting from rising mortgage rates are also a concern, making it necessary to give development careful consideration to avoid a mismatch with customers' affordable condominium purchase prices.」
The concerns became more specific, extending from elevated land prices and construction costs to a surge in construction costs due to higher construction-material prices and labor shortages, and increased purchase costs due to rising mortgage rates. - FY2025-H1RestatedAnnual report
「In the for-sale condominium industry to which our group belongs, land prices and construction costs continue to show a tendency to remain elevated, raising concerns about higher business funding costs due to rising interest rates and the impact on buyers' mortgages.」
In addition to elevated land and construction costs, concerns were expressed about higher business funding costs due to rising interest rates and the impact on buyers' mortgages. - FY2025-Q1RestatedAnnual report
「In the for-sale condominium industry to which our group belongs, construction costs remain high, and in addition to higher condominium selling prices, there are concerns about rising mortgage rates and business funding costs.」
In addition to high construction costs and higher condominium selling prices, concerns about rising mortgage rates and business funding costs were reaffirmed. - FY2024RestatedAnnual report
「In the for-sale condominium industry to which our group belongs, construction costs remain elevated, and higher condominium purchase costs, including mortgage rates, are also a concern. Accordingly, careful consideration of development and sales is necessary to avoid a mismatch with customers' affordable purchase prices.」
Concerns were reaffirmed regarding higher construction costs and purchase costs, including mortgage rates, as well as a mismatch with customers' affordable purchase prices. - FY2024-Q3WorsenedAnnual report
「In the for-sale condominium industry to which our group belongs, continued monetary easing is supporting condominium purchases. However, construction costs remain elevated due to factors including rising prices and labor shortages, and higher condominium purchase costs, including mortgage rates, are also a concern, raising concerns about a mismatch with customers' purchasing power.」
While recognizing the support for demand from accommodative monetary policy, the elevated construction costs resulting from rising prices and labor shortages, higher purchase costs including mortgage rates, and the mismatch with customers' purchasing power were explicitly identified. - FY2024-Q2RestatedAnnual report
「In the for-sale condominium industry to which our group belongs, sales have remained strong, supported by the continuation of accommodative monetary policy and other factors. However, prices are rising, and land prices and construction costs continue to show a tendency to remain elevated, raising concerns about higher condominium selling prices and a mismatch with customers' purchasing power.」
While sales were described as strong, continued concerns were expressed about higher selling prices due to elevated prices, land prices and construction costs, and a mismatch with customers' purchasing power. - FY2024-Q1RestatedAnnual report
「In the for-sale condominium industry to which our group belongs, sales have remained strong, supported by the continuation of accommodative monetary policy and other factors. However, prices are rising and construction costs remain high, raising concerns about higher condominium selling prices. Going forward, it will be necessary to develop properties that meet customer needs to an even greater extent.」
While sales were described as strong against the backdrop of accommodative monetary policy, concerns about higher selling prices due to rising prices and high construction costs, as well as the need for development that meets customer needs, were reaffirmed. - FY2023WorsenedAnnual report
「In the for-sale condominium industry to which our group belongs, the impact of foreign exchange rates and the possibility of a change in accommodative monetary policy are anticipated, raising concerns about higher mortgage rates and business funding costs. In addition, as land prices and construction costs continue to rise, condominium prices will have to increase, making it more difficult to plan condominiums that meet market needs.」
In addition to the previously elevated land and construction costs, the possibility of a change in accommodative monetary policy, higher mortgage rates and business funding costs, and the impact of foreign exchange rates were explicitly identified. - FY2023-Q2WorsenedAnnual report
「In the for-sale condominium industry to which our group belongs, economic activity has become more active as restrictions on movement during the pandemic have been eased, and continued monetary easing has supported condominium purchases. However, land prices and construction costs continue to show a tendency to remain elevated, and further increases in construction-material procurement prices are expected, raising concerns about a mismatch with customers' purchasing power.」
In addition to elevated land and construction costs, further increases in construction-material procurement prices were expected, and a mismatch with customers' purchasing power was identified as a specific concern. - FY2023-Q1RestatedAnnual report
「In the for-sale condominium industry to which our group belongs, economic and social activity is being supported by the easing of restrictions related to COVID-19 and the continuation of accommodative monetary policy. However, land prices and construction costs remain elevated, and the situation in Ukraine raises concerns about further increases in the procurement costs of construction materials.」
While the easing of restrictions on economic activity and accommodative monetary policy were cited as supporting factors, elevated land and construction costs and concerns about further increases in construction-material procurement costs due to the situation in Ukraine were reaffirmed. - FY2022WorsenedAnnual report
「In the for-sale condominium industry to which our group belongs, real estate investment and housing demand, which had been sustained by accommodative monetary policy, have become unable to keep pace with price increases accompanying higher land prices and construction costs. Signs of weakness have emerged in new contracts, and a sense of oversupply has also begun to appear. In addition, there are concerns that the impact of Russia's invasion of Ukraine on supply chains will be reflected, to some extent, in material prices.」
In addition to the previous recognition that price increases were outpacing housing demand, with signs of weakness in new contracts and a sense of oversupply emerging, the impact of the invasion of Ukraine on material prices was added as a concern. - FY2022-Q3RestatedAnnual report
「In the for-sale condominium industry to which our group belongs, sales activities are expected to become more active as the number of COVID-19 cases declines. However, land prices and construction costs continue to show a tendency to remain elevated, raising concerns about the impact on selling prices.」
While expectations were expressed for more active sales activities, concerns regarding elevated land and construction costs and their impact on selling prices were reaffirmed. - FY2022-Q2WorsenedAnnual report
「In addition, land prices and construction costs continue to show a tendency to remain elevated, raising concerns about a mismatch with buyers' purchasing power.」
In addition to elevated land and construction costs, a mismatch with buyers' purchasing power was explicitly identified as a new concern. - FY2022-Q1RestatedAnnual report
「Meanwhile, land prices and construction costs continue to show a tendency to remain elevated, and there are concerns that COVID-19 could affect the procurement of construction materials and extend construction periods.」
In addition to elevated land and construction costs, concerns about the impact of COVID-19 on the procurement of construction materials and longer construction periods were reaffirmed. - FY2021WorsenedAnnual report
「The spread of COVID-19 has created various restrictions, including limits on model-room visits, restrictions on business travel and limits on in-person meetings when concluding loans. Depending on the course of the pandemic, consumer sentiment and the procurement of construction materials could be significantly affected, and the situation therefore remains uncertain. Meanwhile, land prices and construction costs continue to show a tendency to remain elevated.」
In addition to elevated land and construction costs, specific impacts on model-room visits, business travel, loan meetings, consumer sentiment and the procurement of construction materials were described, and the industry environment was characterized as remaining uncertain. - FY2021-Q3WorsenedAnnual report
「In the for-sale condominium industry to which our group belongs, even after the state of emergency related to the spread of COVID-19 was lifted, many companies continued to restrict visits to model rooms to prevent infections. Depending on the course of the pandemic, consumer sentiment and the procurement of construction materials could be significantly affected, and the situation therefore remains uncertain. Meanwhile, land prices and construction costs continue to show a tendency to remain elevated.」
In addition to the previously elevated land and construction costs, the specific impacts of COVID-19 on restrictions on model-room visits, consumer sentiment and the procurement of construction materials were identified, and the industry environment was described as remaining uncertain. - FY2021-Q1WorsenedAnnual report
「In the for-sale condominium industry to which our group belongs, demand is supported by low interest rates resulting from accommodative monetary policy and other factors. However, land prices and construction costs remain elevated, and there are concerns that COVID-19 could affect supply chains, extend construction periods and reduce consumers' willingness to purchase.」
In addition to elevated land prices and construction costs, the potential impact of COVID-19 on supply chains, construction periods and consumers' willingness to purchase was newly identified as a concern. - FY2020WorsenedAnnual report
「In the for-sale condominium industry to which our group belongs, real estate investment and housing demand, which had been sustained by accommodative monetary policy, have become unable to keep pace with price increases accompanying higher land prices and construction costs. Signs of weakness have emerged in new contracts, and a sense of oversupply has also begun to appear.」
It was newly stated that price increases resulting from higher land prices and construction costs are outpacing demand, with signs of weakness in new contracts and a sense of oversupply emerging. - FY2020-Q3RestatedAnnual report
「In the for-sale condominium industry to which our group belongs, no impact from a consumption tax increase is evident at present, and demand is being supported by housing benefits, mortgage tax deductions and low interest rates resulting from accommodative monetary policy. However, competition to acquire construction land has intensified, and concerns include higher construction costs, including labor costs.」
While recognizing the support for demand from low interest rates and housing-related measures, the intensifying competition to acquire construction land and rising construction costs, including labor costs, were reaffirmed as areas of concern. - FY2020-Q2RestatedAnnual report
「Low interest rates have continued under accommodative monetary policy, and market conditions remain firm. However, construction costs, including labor costs, remain elevated, and there are concerns that higher selling prices, including the impact of a consumption tax increase, could weaken consumers' willingness to purchase.」
While market conditions were described as firm due to low interest rates, concerns were reaffirmed regarding elevated construction costs and weaker willingness to purchase due to higher selling prices, including the impact of a consumption tax increase. - FY2020-Q1WorsenedAnnual report
「In the condominium industry in which the Group operates, market conditions have remained firm due to low interest rates resulting from monetary easing and other factors. However, land prices and construction costs are rising, and, together with the impact of the consumption tax increase, this raises concerns about future increases in selling prices and a slowdown in demand.」
In addition to rising land prices and construction costs, new concerns were explicitly identified regarding higher selling prices, taking into account the impact of a consumption tax increase, and a slowdown in demand. - FY2019WorsenedAnnual report
「In the for-sale condominium industry to which our group belongs, a certain level of demand is expected to continue, but rising selling prices resulting from higher land prices and construction costs could disrupt the balance between supply and demand. In addition, construction periods have been extended due to labor shortages caused by the increase in construction work in various regions and the decline in the working-age population, making it essential to manage construction schedules while prioritizing safety above all else.」
In addition to the possibility that rising land prices and construction costs could impair the balance between supply and demand, the prolonged construction periods caused by labor shortages and the need to manage construction schedules were explicitly identified. - FY2019-Q3WorsenedAnnual report
「In the for-sale condominium industry to which our group belongs, low mortgage rates have supported demand and market conditions have remained firm. However, competition to acquire construction land has intensified, and there are many areas of concern, including the potential impact of a future consumption tax increase.」
While market conditions were described as firm due to low interest rates, intensified competition to acquire construction land and numerous areas of concern, including the impact of a consumption tax increase, were cited. - FY2019-Q2RestatedAnnual report
「Low mortgage rates resulting from monetary easing have supported demand, and market conditions remain firm. However, land prices and construction costs continue to trend upward, and concerns about a deterioration in market conditions have not been dispelled.」
While recognizing the support for demand provided by low mortgage rates and firm market conditions, the continued rise in land prices and construction costs and concerns about a market downturn were reaffirmed. - FY2019-Q1WorsenedAnnual report
「In the for-sale condominium industry to which our group belongs, market conditions have remained firm due to low interest rates resulting from accommodative monetary policy and other factors. However, rising land prices and construction costs have made it increasingly necessary to develop properties at prices that meet customer needs, requiring greater efforts by companies.」
While market conditions were described as firm due to low interest rates, the impact of rising land prices and construction costs was said to require greater efforts to develop properties at prices that meet customer needs. - FY2018WorsenedAnnual report
「Although the market remained firm, supported by low interest rates under accommodative monetary policy, the marked rise in land prices and construction costs due to labor shortages, together with longer construction periods, has heightened concerns that progress on future procurement and development plans may be impeded.」
In addition to rising land prices and construction costs, pronounced labor shortages and longer construction periods were cited, heightening concerns about procurement and development plans. - FY2018-Q3WorsenedAnnual report
「In the condominium industry in which the Group operates, low mortgage rates have supported demand and market conditions have remained firm. However, land and construction costs continue to rise, raising concerns that market conditions may deteriorate.」
While the market is described as firm due to low interest rates, the continued rise in land prices and construction costs was explicitly identified as a concern that could lead to a deterioration in market conditions. - FY2018-Q2RestatedAnnual report
「In the condominium industry in which the Group operates, selling prices have remained high due to rising land and construction costs, but low mortgage rates have supported demand and firm market conditions have continued.」
While expressing concern over rising land and construction costs and high selling prices, the company reiterated its view that market conditions remained firm due to low mortgage rates. - FY2018-Q1RestatedAnnual report
「In the condominium industry in which the Group operates, concerns remain over the impact of rising development costs on selling prices. However, market conditions have remained firm due to low interest rates resulting from monetary easing and other factors.」
While expressing concern over higher selling prices resulting from rising development costs, the company reiterated its view that market conditions remained firm due to low interest rates and other factors. - FY2017RestatedAnnual report
「In the housing industry, market conditions remained strong as lower loan rates stimulated housing demand and real estate investment, but rising land prices and construction costs may result in an imbalance between supply and demand.」
While acknowledging strong market conditions due to lower loan rates, the company reiterated the possibility of a supply-demand imbalance resulting from rising land prices and construction costs. - FY2017-Q3WorsenedAnnual report
「In the condominium industry in which the Group operates, lower loan rates have boosted demand for home purchases and real estate investment, and market conditions have remained firm. However, land and construction costs have also risen, making it increasingly difficult to assess future supply and demand trends in procurement and development.」
While describing market conditions as firm, the company stated that rising land and construction costs had made it even more difficult than previously to assess future supply and demand trends in procurement and development. - FY2017-Q2WorsenedAnnual report
「In the condominium industry in which the Group operates, rising land and construction costs have made procurement and development more challenging. However, lower mortgage rates have absorbed the increase in condominium selling prices, and market conditions have remained firm.」
The impact of rising land and construction costs was explicitly described as making procurement and development more challenging, in addition to the previously noted price increases and supply-demand concerns. At the same time, the company also noted that lower mortgage rates had absorbed the increase in prices and that market conditions remained firm. - FY2017-Q1First statedAnnual report
「In the condominium development industry to which the Group belongs, active real estate transactions have continued against the backdrop of monetary easing policies. However, selling prices have also risen as construction costs have increased, raising concerns about balance between supply and demand.」
The company noted that active real estate transactions continued, while concerns were identified regarding supply and demand due to rising costs and selling prices.