Investor Relations

Sales

Condominiums

Having entered the condominium sales business in the first half of the 1960s, Sumitomo Realty is a pioneer in the domestic market for condominium development and sales. We have become a leading company for condominium sales in Japan by staying ahead of our competitors, strategically focusing on city centers and proactively developing large, high-rise properties. We have been the No. 1 supplier of condominium units both nationwide and in the Tokyo Metropolitan area for five consecutive years.

Overview of the Fiscal Year

The condominium market saw continued firm demand from consumers looking to purchase condominiums owing to low interest rates as prices remained high, especially in central Tokyo, reflecting the limited supply of new condominiums.
  In such an environment, we delivered a total of 5,970 condominium units, detached houses and land lots during the March 2019 fiscal year, an increase of 89 units from the previous fiscal year, owing to the start of delivery of units in projects such as Grand Hills Motoazabu, City Tower Kokubunji the Twin, City Terrace Yokohama Nagatsuta, and City Tower Higashi Umeda Park Front. As a result, the segment achieved record results in terms of the number of units delivered, revenue from operations, and operating income. The segment, with income at a high level, achieved an increase in operating income for the ninth consecutive year.
  The number of condominium units sold decreased by 2,244 units from the previous fiscal year to 5,111 units. We controlled the pace of concluding contracts, including for units whose sales are to be recorded in the next fiscal year, because progress exceeded our initial expectations. As a result, the number of condominium units sold during the fiscal year under review was lower than the level for the previous fiscal year when the number of new condominium units brought to market was particularly high. Contracts have already been concluded for about 80% (about 65% for the previous fiscal year) of a total of 5,300 condominium units to be delivered in the next fiscal year. We are making good progress toward achievement of the earnings targets for the next fiscal year.

Outlook

5,300 condominium units are expected to be delivered and contracts had already been concluded for about 80% of them as of the beginning of the March 2020 fiscal year. Although we forecast a 3.5% year-on-year decrease in revenue from operations to ¥320.0 billion, we plan to maintain operating income of ¥47.0 billion, the same level as for the March 2019 fiscal year.
  Our target for the number of condominium units sold is 5,000 units for the March 2020 fiscal year, including units to be delivered thereafter.

TOPICS

Principal Condominium Projects in the Eight Management Plan

In 2018, Sumitomo Realty became the No. 1 supplier of condominium units both nationwide and in the Tokyo Metropolitan area for the fifth consecutive year.
  In the Eighth Management Plan, numerous projects are scheduled in central Tokyo and in Osaka, Sapporo and other major cities, including City Towers Tokyo Bay, which is a large-scale condominium building with 1,539 units; City Tower Oimachi comprising residences, commercial facilities, and greenery; and City Tower Osaka Honmachi, which is one of the largest projects in Osaka City.