Daiwa to Exit New Homebuilding in 23 Prefectures in Japan

Osaka, Sept. 4 (Jiji Press)–Daiwa House Industry Co. said Friday it will quit new detached-home construction in 23 of Japan’s 47 prefectures following a long-term downtrend for starts of such homes amid rising material and construction costs and population declines. From April 2027, the company will focus its detached-home business on urban areas including Tokyo and the western prefecture of Osaka. Daiwa House currently has bases for its detached-home business in all prefectures except Yamagata, northeastern Japan, and Okinawa, southernmost Japan. The withdrawal will end its new-home construction operations in the northernmost prefecture of Hokkaido and the Tohoku northeastern region, among other areas. About 200 employees will be reassigned. Sales of custom-built homes in the areas concerned are scheduled to stop by the end of this month, while sales of houses built for sale will continue through March next year. Daiwa House will instead strengthen its housing stock business with greater growth potential, including home renovations and rental property management. The company will reorganize its housing stock operations, consolidating the functions of detached-home and rental housing units into separate subsidiaries. It aims to establish a nationwide network that can handle a broad range of housing-related consultations, including home maintenance and management as well as moving needs. END [Copyright The Jiji Press, Ltd.]