DX

Our Group aims to revitalize the housing market, centering on the rehabilitation of existing homes through real (home) x technology to create a future in which anyone can easily change homes anytime and as many times as they wish. Our philosophy is based on our desire to broaden people’s options in life by transforming housing, which until now has been considered for many the most expensive, once-in-a-lifetime purchase, into something they can change easily as their lifestyle changes.

We strongly believe that we can enhance our Group’s enterprise value by leveraging technology to create the future we aspire to and contribute to building a sustainable society.

　We concentrate our efforts on rehabilitation of existing homes, which is an up-and-coming business front.

We believe the existing home market will expand significantly in the future in an environment marked by changes in social conditions (housing stock, demographics, and growing income inequality), rising costs of materials and labor, and increased awareness of sustainability. In addition, the Japanese government’s Japan Revitalization Strategy 2016, released in 2016, includes measures to revitalize the existing home and renovation markets. The strategy includes the government’s promotion of digitization, and the administration has decided to give a strong push to the existing home market x IT. Against the backdrop of this market environment, we rehabilitate existing homes in a project named KAITRY.

We believe that in the mid-to-long term, the Japanese housing market will be dominated by used condominiums in urban areas and used detached houses in rural areas. We plan to expand the secondhand condominium business through the nationwide network of our Group company Homenet, and the current Group companies and additional firms through M&A will expand the detached housing business. We expect to grow our business significantly by stimulating the market for rehabilitation of existing homes through KAITRY, a platform equipped with our proprietary AI assessment model.

　In the real estate industry, many processes during a transaction are still conducted offline, making real estate deals cumbersome, complex, uncertain, and inefficient.

　Our Group intends to develop a one-stop real estate transaction system by providing sales support for real estate brokerage firms, a transaction platform for individuals, and in-house operational support through digital transformation (DX) through KAITRY, an iBuyer platform.

• （１）Sales support for real estate brokerage firms

  We provide property research reports that include property price trend forecasts, the surrounding environment, recommended similar properties, and real-time appraisal prices by AI.

• （２）Providing a real estate transaction platform for individuals

  We help individual customers own properties or change dwellings with peace of mind, completing everything online, from AI assessments based on transaction records to sales, purchase, and after-sales services.

• （３）In-house operational support

  The AI price assessment will improve the speed and objectivity of valuation results. The marketing AI helps increase our revenue by determining the difficulty of selling each of our properties and proposing an optimum approach to marketing (selling as an investment property, holding as a rental property, or holding for a long time and then selling at a fair price).

　The Group has established a DX Promotion Department to promote DX in real estate transactions and is strengthening DX in the relevant departments.

We will strengthen and consolidate our DX promotion measures through the following efforts:

• （１）Establishment of Prop Tech Strategy Department (the Principal DX Promotion Department), a department to promote DX strategies

• （２）Establishment of an internal coordinate system between the Prop Tech Strategy Department, Sales Department, and Administrative Department for continuous development of DX.

　The Group measures how well we have advanced DX by the following three indicators corresponding to the service functions incorporated in the DX Strategy.

• （１）Increase in the number of dealers thanks to the sales support for real estate brokerage firms

• （２）Increase in the number of properties purchased thanks to the real estate transaction platform for individuals

• （３）Increase in the number of properties purchased per sales representative thanks to the in-house operational support