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Real estate industry

Japan's Top Contractors Face 30% Drop in Condominium Orders

Strategic Insights

— 1 min read

Japan's top general contractors are expected to win significantly fewer condominium orders this fiscal year, with combined orders projected to drop by 30% from 2007 levels, totaling 846 billion yen (US$8.6 billion). The decline is largely attributed to a decline in demand following a series of bankruptcies among condominium sellers, including Japan General Estate Co. and Nichimo Corp. Amidst the uncertain market, contractors are shifting their focus towards areas with relatively stronger demand, such as earthquake-resistant commercial building improvements.

Key Takeaways:

  • The nation's top eight general contractors are expected to win a combined 846 billion yen (US$8.6 billion) in orders to build condominiums this fiscal year.
  • This represents a 30% drop from fiscal 2007.
  • At the five leading firms, orders are likely to slip 37% to approximately 416 billion yen.
  • Kajima Corp. and Taisei Corp. are expected to see demand dwindle by about half, to 80 billion yen and 75 billion yen, respectively.
  • Takenaka Corp. is the only firm to see a surge in orders, with demand expected to jump to 140 billion yen.
  • Shimizu Corp. and Obayashi Corp. saw demand decline to 42 billion yen and 79 billion yen, respectively.
  • Haseko Corp. is predicted to suffer a 15% drop in orders to 270 billion yen.
  • Sumitomo Mitsui Construction Co. is expected to see demand slip to 100 billion yen.
  • Maeda Corp. is expected to have won 60 billion yen in orders.

Statistics:

  • 846 billion yen (US$8.6 billion) - Combined orders projected for top eight general contractors this fiscal year.
  • 30% - Decline in combined orders from fiscal 2007 levels.
  • 416 billion yen - Approximate orders to be won by the five leading firms.
  • 37% - Percentage decrease in orders at the five leading firms.
  • 80 billion yen - Expected demand for Kajima Corp.
  • 75 billion yen - Expected demand for Taisei Corp.
  • 140 billion yen - Projected surge in orders for Takenaka Corp.
  • 42 billion yen - Expected demand for Shimizu Corp.
  • 79 billion yen - Expected demand for Obayashi Corp.
  • 15% - Percentage drop in orders for Haseko Corp.
  • 270 billion yen - Predicted orders for Haseko Corp.
  • 100 billion yen - Expected demand for Sumitomo Mitsui Construction Co.
  • 60 billion yen - Orders won by Maeda Corp.

Sources:

  • Nikkei (no date provided)
  • Asia Pulse (March 9)

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