Every year around half a million single-family houses are newly built in Japan, a large proportion being traditional wooden houses. Major wellsprings of our business strength are our 460,000 residences, similar in number to the annual number of nationwide starts, and the know-how in the preparation and development of residential sites we have accumulated from large-scale residential developments (new towns).

With respect to Japan, with its frequent earthquakes and high temperatures and humidity, earthquake resistance and durability are of particular importance. In the previous fiscal year Daiwa House launched the first prefabricated earthquake-proof house, and we intend to reduce its cost further and to ensure market diffusion. In addition, we launched a product using an exterior insulation method designed to enhance durability, and others limited to use in specific regions, taking local climatic conditions and lifestyles into consideration.

The sphere of health and safety is another key consideration. Since burglary is becoming a social problem, the need for crime-prevention measures for housing is increasing, so we have enhanced the defenses that dwellings have against crime, through the use of such materials as multilayer glass to prevent entry by burglars. Also, to make houses healthier places, we as a matter of policy do our best to exclude harmful substances from our building materials.

Steps taken to achieve that include the introduction of a system of long-term 40-year* warranties, the conduct of regular inspections by our customer advice centers, and the making of suggestions for renovation by our designated centers for house enlargement and reconstruction. We will continue vigorously to foster good customer relations and to enhance the value of this business.
* As of May 2003, the warranties are applied to wooden structure houses built using traditional methods as well as to steel-frame houses.