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.