News On Japan

Japanese Housing Manufacturers’ Next Battleground: America

TOKYO, Aug 14 (News On Japan) - Japan’s housing demand is on a declining trend due to population decrease and a reduction in the number of households. This is evident in the consistent decrease in new housing starts since the peak in the late 1990s. In this environment, the strategies of major companies can be broadly categorized into three areas: diversification within the housing business, diversification into non-housing businesses, and overseas expansion.

The 2023 fiscal year sales rankings of Japan’s major housing manufacturers place Daiwa House Industry, Sekisui House, and Sumitomo Forestry at the top. Daiwa House leads in non-housing business, such as logistics and commercial facilities, while Sekisui House has traditionally focused on the domestic housing market but is now actively expanding into hotels and overseas markets. Sumitomo Forestry, on the other hand, has experienced rapid growth in the U.S. housing market.

The major companies are increasingly strengthening their U.S. operations. In April, Sekisui House acquired the U.S. homebuilder MDC Holdings for approximately 750 billion yen. Daiwa and Sumitomo are also expanding their presence through mergers and acquisitions. The U.S. is an attractive market due to its population growth and the increasing number of households, particularly among Generation Z and Millennials, making it a structurally expanding market for housing.

Sekisui House has introduced its unique construction methods, developed in Japan, to the U.S., focusing on earthquake-resistant and smart home technologies. In contrast, Daiwa House and Sumitomo Forestry are leveraging the brands of the companies they have acquired, aiming for steady growth by selling homes tailored to the American market, which they see as a local industry.

In addition to housing, the companies are also investing in the hotel business. Sekisui House is collaborating with Marriott International to develop luxury hotels, such as St. Regis, and regional hotels adjacent to roadside stations in Japan. Daiwa is accelerating its investment in business hotels through its subsidiary, Daiwa Roynet Hotels. Meanwhile, Sumitomo Forestry entered the hotel business three years ago, participating in regional revitalization projects in collaboration with government and private sectors.

The expansion of hotel operations is largely driven by the inbound tourism boom, which is supporting the growth of the hotel business. Sekisui House, which had previously focused solely on housing, is now diversifying into this booming sector.

Source: テレ東BIZ

News On Japan
POPULAR NEWS

From April 1st, a new regulation took effect across Osaka Prefecture requiring all restaurants with a customer seating area larger than 30 square meters to become entirely smoke-free indoors—unless they install a designated smoking room. Establishments violating the rule face fines of up to 50,000 yen, while customers may be fined up to 30,000 yen.

The Imperial Household Agency launched an official YouTube channel on April 1st to introduce the activities of Emperor Naruhito and Empress Masako.

Japan's new fiscal year began on April 1st, with companies across the country holding entrance ceremonies to welcome new employees.

The Japanese government has released an updated damage forecast for a potential Nankai Trough megaquake, estimating that up to 298,000 people could die in the worst-case scenario. This projection reflects a slight reduction from the previous estimate of 332,000 deaths made 13 years ago.

The Japan Meteorological Agency announced on March 30th that cherry blossoms (Somei-Yoshino) in central Tokyo have reached full bloom, one day earlier than the historical average and five days earlier than last year.

MEDIA CHANNELS
         

MORE Business NEWS

The Japanese government approved a cabinet ordinance on April 1st to introduce a new pre-screening system for foreign companies investing in Japan. The revised regulation will take effect on May 19th.

The Bank of Japan's March Tankan survey, a key quarterly economic report, showed that business sentiment among large manufacturers has deteriorated for the first time in four quarters.

Tokyo has made it mandatory to install solar panels on newly built houses starting April 1st, as part of its broader effort to halve greenhouse gas emissions by 2030.

The new fiscal year began on April 1st, with companies across the Kansai region holding entrance ceremonies to welcome new employees.

Sukiya, one of Japan's leading beef bowl restaurant chains, announced it will temporarily close nearly all of its stores after an insect was found in a food item served at one of its outlets.

Fuji Television announced a sweeping overhaul of its management structure on March 27th, including the retirement of longtime executive Hisashi Hieda, who served on the board for 41 years.

The Trump administration announced on March 26th that it will impose an additional 25% tariff on imported automobiles and key auto parts. According to the proclamation signed by President Trump, the tariffs are set to take effect on April 3rd and will apply to all imported vehicles, including those from Japan.

Rapidus, a company aiming to domestically produce next-generation semiconductors, plans to begin operating its prototype line for advanced chips in April. The company is accelerating development of 2-nanometer-class semiconductors, expected to be used in artificial intelligence (AI) applications.