Daiwa House Industry Co., Ltd. will narrow its focus on orders for newly built detached homes and concentrate its sales operations in urban areas, including Tokyo and Osaka. The company said it would withdraw from 23 prefectures and set a uniform minimum sales price of ¥50 million for custom-built homes.
Daiwa House Industry Co., Ltd. has decided to narrow its focus on orders for newly built detached homes and withdraw from 23 prefectures in order to concentrate its sales operations in urban areas. The move will reduce the scope of its nationwide operations as the company reorganizes its sales network by region.
The sales price of custom-built homes will be limited to ¥50 million or more. The company plans to improve profitability by raising the average unit price. Rising material and labor costs are also said to be squeezing the profitability of the business.
There have also been indications that persistently high interest rates and inflation are suppressing housing demand, while labor shortages in the construction industry are affecting housing sales activities and construction work. Major Japanese homebuilders are undertaking fundamental reviews of their business structures.