Difficulty Securing Investment Returns on Development Projects Due to Soaring Construction Costs
First written in FY2019. 1 of 2 entries say "Worsened", first in FY2026. Latest entry: FY2026.
Sotetsu Holdings 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.
7 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The environment surrounding the Sotetsu Group is becoming increasingly challenging due to the declining birthrate and aging population, labor shortages, increases in various costs resulting from higher construction and commodity prices, rising interest rates, and an uncertain social environment, among other factors.」
In addition to rising construction costs, increases in various costs resulting from higher construction and commodity prices were specified as factors contributing to the increasingly challenging business environment. - FY2019First statedAnnual report
「Although the Tokyo Olympic and Paralympic Games were expected to stimulate the economy, rising construction costs continued to make it difficult to secure investment profitability for development projects.」
The difficulty of securing investment profitability for development projects due to rising construction costs was described as a risk.