Deteriorating Product Profitability Due to Rising Construction and Building Material Costs
First written in FY2018. 4 of 11 entries say "Worsened", first in FY2022-Q2. Latest entry: 2026-08-10.
Koryojyuhan moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 12 of 16 companies on the "Worse" side.
9 other companies' latest entry also says "Restated".
- FY2026-H1WorsenedAnnual report
「In the real estate industry, to which we belong, housing prices have remained high because of elevated material prices and rising labor costs.」
Explicitly identifies soaring material prices, rising labor costs and persistently high housing prices, providing greater detail on the difficult cost environment surrounding product development and sales margins. - FY2023RestatedAnnual report
「If procurement prices or building material prices rise as construction costs increase due to natural disasters, intensifying competition or changes in the economic environment, this may affect the Group's operating results and financial position.」
Continues to cite the risk that higher construction, procurement and building material costs may affect product development. - FY2022RestatedAnnual report
「If procurement prices or building material prices rise as construction costs increase due to natural disasters, intensifying competition or changes in the economic environment, this may affect the Group's operating results and financial position.」
Continues to cite the risk that higher construction, procurement and building material costs may affect product development margins. - FY2022-Q3WorsenedAnnual report
「The outlook for the economy remains uncertain due to soaring resource prices, including timber, resulting from the prolonged situation in Ukraine, and the rapid depreciation of the yen in the foreign exchange market.」
Resource prices, including timber, continue to rise, creating uncertainty in the cost environment surrounding product development and the real estate business together with the prolonged situation in Ukraine and the weak yen. - FY2022-Q2WorsenedAnnual report
「The development of products is expected to face difficult conditions due to the so-called wood shock caused by increased overseas demand for residential timber, as well as soaring resource prices and supply shortages resulting from Russia's invasion of Ukraine.」
The explanation of the risks from higher construction and building material costs has changed to state that increased demand for residential timber, soaring resource prices and supply shortages affect product development. - FY2020MitigatedAnnual report
「Construction costs, which had remained elevated for a prolonged period, have begun to stabilize, and the stable development of the Company's own-designed investment properties is gradually resuming. However, areas where mid- to high-rise reinforced-concrete apartments can currently be developed are limited to central locations with high rents per tsubo, while in suburban areas development is limited to wooden apartments and detached rental housing.」
While high construction costs have stabilized and property development is gradually resuming, the Company has added the constraint that areas suitable for developing reinforced-concrete properties are limited to central locations. - FY2019MitigatedAnnual report
「Construction costs, which had remained elevated for a prolonged period, have begun to stabilize, and the stable development of the Company's own-designed investment properties is gradually resuming.」
Although the risk of high construction costs continues to be disclosed as a risk item, the Company explains that construction costs have stabilized in the current business environment and property development is gradually resuming. - FY2018First statedAnnual report
「If procurement prices or building material prices rise as construction costs increase due to natural disasters, intensifying competition or changes in the economic environment, this may affect the Group's operating results and financial position.」
The Company develops several investment properties of its own design each year and aims to develop large reinforced-concrete properties.