Demand for the redevelopment of aging buildings amid rising construction unit costs
First written in FY2023. 5 of 9 entries say "Restated". Latest entry: 2026-07-28.
No other company in this theme has enough history to compare yet.
- FY2026-H1Additional explanation of the increasing difficulty of the new-build development model and expanding acquisition opportunitiesAnnual report
「Against the backdrop of rising construction costs and interest rates, using existing buildings has become more profitable than new construction. As a result, developers whose business models are based on new-build redevelopment are finding it increasingly difficult to continue their traditional model of demolishing older buildings and constructing new ones. For the Company, which specialises in redeveloping older buildings, this is expanding acquisition opportunities and continues to provide a favourable business environment.」
The Company has added an explanation that rising construction costs and interest rates have made the use of existing buildings more profitable than new construction, making the traditional model of new-build redevelopment developers more difficult while expanding the Company’s acquisition opportunities. - 2026-04-28AdvancedFinancial results
「Against a backdrop of higher construction costs and interest rates, using existing buildings is now more advantageous in terms of profitability than new construction.」
The company explains that higher construction costs and interest rates have made the use of existing buildings more profitable, expanding procurement opportunities for older-building regeneration. - FY2025Additional explanation of the redevelopment business’s relative resilience to rising construction costs and interest ratesAnnual report
「New construction often takes 2 to 3 years to complete, creating a risk that profitability assumptions will be undermined by construction-cost inflation during that period. By contrast, the redevelopment business that forms the Company’s core operations has a shorter completion period of 6 months to 1 year, limiting the risk that sharp fluctuations in construction costs will materially undermine the profitability of the business as a whole.」
In addition to increased demand for redevelopment due to rising construction costs and interest rates, the Company explains that the impact on its redevelopment business is relatively limited because of differences from new construction in project duration and total project costs. - FY2025-H1RestatedAnnual report
「In addition, demand among building owners to use existing buildings is rising in response to higher construction costs and interest rates, continuing to provide a favorable business environment for us given our strength in revitalizing older buildings.」
The Company continues to recognise that rising construction costs and interest rates are increasing demand for the use of existing buildings rather than new construction. - FY2024RestatedAnnual report
「Construction costs for steel-framed office buildings have risen 1.5-fold over the past 2 years. Together with rising interest rates, this has increased the number of building owners who hesitate to rebuild older buildings and consider renovations.」
The Company continues to recognise that construction costs have risen 1.5-fold over the past 2 years and that, against the backdrop of rising interest rates, more owners are choosing renovations rather than rebuilding older buildings. - FY2024-Q2RestatedAnnual report
「Rising construction costs and interest rates are increasing the number of cases in which companies hesitate to rebuild and instead choose to use existing buildings, creating a favourable environment for the Company, which specialises in the redevelopment of older buildings.」
The Company continues to recognise that rising construction costs and interest rates are increasing the number of cases in which companies choose to use existing buildings rather than construct new ones. - FY2023First statedAnnual report
「Construction costs for office buildings rose sharply from ¥180.4 thousand per ㎡ in 2002 to ¥362.9 thousand per ㎡ in 2022. Against this backdrop, more companies are choosing renovations, which can control costs, rather than new construction.」
The Company identifies rising office construction costs as a factor behind the increase in companies and building owners choosing renovations rather than new construction.