Friday, February 22, 2013
Nomura Real Estate Was Top Condo Supplier In '12
TOKYO (Nikkei)--Nomura Real Estate Development Co. led the nation's condominium firms last year by putting 6,181 units on the market, according to a ranking announced Thursday by Real Estate Economic Institute Co.
The number of condominiums unveiled nationwide rose 8.4% on the year to 93,861. The supply has improved for a third straight year since reaching a low in 2009, when the market was reeling from the financial crisis that began in 2008. The greater Osaka area saw a 15.1% gain, led by large properties in the city. Kyushu also had a strong showing with a 32.3% jump, while the Tokyo metropolitan area saw an increase of 2.5%.
The Nomura Real Estate Holdings Inc. (3231) unit clinched the crown for the first time, spurred in part by the strength of urban luxury condo series. An affordable housing line that began in 2011 in the Tokyo suburbs also contributed to growth.
Units offered in Kawasaki City and other factors pushed second-place Mitsui Fudosan Residential Co. up one rank from 2011. Former top-developer Daikyo Inc. (8840), which has shifted over the past few years to a strategy that stresses per-project profitability, was in sixth place.
Of the more than 300 firms that provided condominiums in 2012, the top 20 offered a total of 48,230 units for a 51.4% share, marking their third straight year with a share exceeding 50%. Many emerging and midsize developers reduced or ceased operations after the Lehman crisis, leading one Real Estate Economic Institute analyst to say "the major companies' monopoly has become evident."
The condo supply is pegged to rise 10.7% to 103,900 this year. Some in the industry feel that brand consciousness is growing among safety-minded consumers in the wake of the 2011 disaster, raising the likelihood that the market shift to major developers will accelerate. With mid- to long-term forecasts calling for the market to shrink as the population decreases, competition among major firms will likely intensify.
(The Nikkei, Feb. 22 morning edition)