As urban land prices fall in Japan, the development and sale of new condominiums is being concentrated increasingly in the central parts of urban areas. The market for newly built condominiums declined for the first time in four years, as in spite of the greater popularity of large ultra–high–rise properties in urban areas, there was slack demand for condominiums in regional and suburban areas. Non–consolidated sales of condominiums fell by 11.4% to 3,669 units.

The majority of condominiums in Japan are concentrated on Tokyo and the surrounding area, whereas Daiwa House´s condominium sales are nationwide. In the Tokyo area, during the term under review Daiwa House focused its efforts on urban–type compact condominiums with a floor space of 30–50 square meters, for which new demand is arising, particularly among people living alone, senior citizens, SOHO workers, and people wanting them for investment purposes. In regional cities we developed and sold high-quality condominiums designed to meet local requirements.

With respect to products, we strengthened our uniform D´ Series brand, and standardized and enhanced aspects such as performance criteria by classifying products in four groups according to location and size. Of particular note was our active nationwide adoption of the skeleton infill (SI) design, in which structure and interiors are designed separately.

Daiwa Service continued its steps to enhance its 24–hour unit–specific management system and its long–term 40–year repair plan. As a result, it increased the number of units under management by 6.0% to 36,207.