Daiwa House Industry Co., Ltd., a major housing manufacturer, has revised upward its earnings forecast for the current fiscal year due to the favorable performance of its detached housing business in Japan and overseas.
On the other hand, the company expressed caution about the future of the housing business, saying that mortgage interest rates are rising in the United States.
Daiwa House Industry has revised its earnings forecast for the current fiscal year upwards, with
sales expected to increase by 3.9% from the previous forecast to 4.76 trillion yen, and
final profit to increase by 3.7% to 226 billion yen. clarified.
This was mainly due to strong sales of single-family homes in the United States and other countries, even in the face of soaring material prices, and improved profitability in the hotel business in Japan due to a recovery in travel demand.
On the other hand, in the United States, interest rates are on an upward trend, with 30-year mortgage interest rates surpassing 7% on average for a week late last month.
Regarding this, President Keiichi Yoshii said at the financial results conference, "The detached housing business in the United States is doing well so far, but the impact of interest rates will definitely come out. I think the impact will be visible around January next year, but it will be difficult to buy a house. I think it's going to be a situation, and I don't think it's going to be like this year," he said, showing caution about the future of the housing business.