Media & Solutions
Housing and Real Estate
Ensuring a Highly Competitive Edge with Strong Brand and Excellence in Proposals to Clients
No. 1 Brand Covering a Wide Range of Users' Needs for Housing
In the Housing and Real Estate business, we provide information on our website, apps, and magazines under the "SUUMO" brand that meets the wide range of needs for housing to lease, purchase, build and renovate.
In addition to property and agent information, these media cover a variety of housing information including step-by-step know-how to find a property, to purchase housing, and to order customized housing and renovation. We also offer in-person and telephone consultation services to those who are looking for new condominiums and ordering customized housing.
Users of SUUMO are those who are considering buying a property or renting a house or room, and clients are developers of condominiums, independent housing, and customized housing, house manufacturers, building contractors, property leasing agents, secondhand housing brokers, and builders for renovations. Major earnings come from advertising fees billed to clients listing property information on our website, apps, or in our publications. We also have in-person consultation services in the condominium and customized housing division, earnings of which come from success fees for brokering deals.
Market Environment (FY2017)
Increase in the Number of New Housing Starts has Experienced Slowdown
New housing construction starts, one of the indicators for the housing market, was 946,396 units in FY2017, a decrease of 2.8% from the previous fiscal year. The market has experienced slowdown mainly in new construction starts of condominium apartment, while it trended upward until FY 2016 except for a drop in FY 2014 for the first time in five years due to the last-minute surge in demand before the consumption tax hike in April 2014.
Having Kept Top Position in Japan and Achieved Revenue Increase
Although the consumption tax hike has had a major impact on business results over the past few years, our service keeps the top position in the Japanese market as a result of enriching our media content and maintaining superb brand recognition.
In FY 2017, revenue in the independent housing and leasing divisions grew as a result of sales initiatives to offer its solutions to its clients and efforts to attract more users to its platform. Meanwhile, revenue in the Housing and Real Estate business for FY 2017 declined by 1.4% year on year to 98.1 billion yen, primarily due to a sale of a subsidiary and the absence of a one-time revenue increase associated with the in-person consultation services in FY 2016.
Excluding the one-time factors mentioned above, revenue increased by 4.8%* year on year.
* Calculated based on the managerial accounting numbers.
Strategy Going Forward
Continuously Deepen Our Relations with Clients and Aim to Achieve Sustainable Growth
Our greatest strength is SUUMO's brand highly recognized among people looking for housing, advantages in our abilities of collecting and analyzing user needs data, and strong tie with our clients led by highly effective proposals based on the deep understanding of clients' operational flows.
Looking to the future, we will continue to improve our media and services that realize greater user satisfaction. At the same time, we aim to provide clients with not only an advertising media, but also comprehensive sales promotion support, including operational support and other services. We are aiming to realize greater returns to clients from their advertisement on our media through strategic planning on client products and sales promotion campaigns based on our data analysis of user needs, and communication design planning.
New Housing Construction Starts in Japan/Year-on-Year Growth Rate [Number of Houses, %]
Annual Revenue [Billions of Yen]
* under Japanese GAAP
FY2017 Revenue Comparison [Billions of Yen]
* The end of LIFULL's fiscal year changed from March 31 to September 30 in this term, so the results were based on the irregular 6-month term.