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.

[Copyright The Jiji Press, Ltd.]