Post-increase pullback in housing demand following the consumption tax hike
First written in FY2019. 3 of 5 entries say "Materialised", first in FY2020-Q3. Latest entry: FY2022.
New Constructor's Network moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 56 of 127 companies on the "Worse" side.
40 other companies' latest entry also says "Dropped".
- FY2022DroppedAnnual report
「New housing starts in 2021 (January to December) totaled 856,000 units, up 5.0% year on year, marking the first increase in 5 years.」
The post-increase pullback in housing demand resulting from a consumption tax hike is not identified as an independent risk in the business and other risks for FY2022. - FY2021MaterialisedAnnual report
「In the housing construction market in which our Group operates, new housing starts declined amid the effects of restrained sales activities to help prevent the spread of COVID-19, as well as the post-increase pullback following the consumption tax hike that had continued since the year before last. The order environment across the market remained challenging, and new housing starts in 2020 (January to December) totaled 815,000 units, down 9.92% year on year.」
The post-increase pullback following the consumption tax hike continued to contribute to the decline in housing starts, together with the impact of COVID-19. - FY2020MaterialisedAnnual report
「New housing starts in 2019 (January to December) totaled 905,000 units, down 4.0% year on year. From January 2020, the negative effect of the consumption tax increase was significant, with new housing starts falling 13.7% year on year in January, 12.3% in February and 7.6% in March, remaining sluggish.」
The continued occurrence of the post-increase pullback in housing demand following the consumption tax hike was described through the decline in new housing starts and the year-on-year declines from January through March 2020. - FY2020-Q3MaterialisedAnnual report
「Demand declined following the consumption tax increase, under which the 10% rate after the increase applied to contracts signed from April 2019 for custom-built homes under transitional measures for construction contracts. During the cumulative third quarter of the fiscal year under review, structural shipments totaled 395 units, compared with 411 units in the same period of the previous year, down 3.9% year on year, while shipments of processed structural products totaled 1,175 units, down 1.7% year on year.」
The post-increase pullback in housing demand following the consumption tax hike, which had been described previously, materialized, and shipments of structures and processed structural products declined year on year. - FY2019First statedAnnual report
「The consumption tax and other taxes are scheduled to be raised to 10% in October 2019. Although temporary demand brought forward ahead of the tax increase is expected, housing starts may remain sluggish over the medium to long term.」
The impact of the October 2019 tax increase was identified as a risk, based on the rush demand and subsequent pullback seen when the tax rate was previously raised from 5% to 8%.