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Let’s take a look at the recognition of business environment for our main businesses.
In Offices, while there has not been a significant fluctuation in either vacancy rates or rents, performance is favorable or unfavorable depending on the area. However, in Shibuya area, our main area of business, favorable performance has been continuing largely due to that area’s characteristic of containing numerous growth enterprises. Our vacancy rates there are trending along low levels.
Our outlook is that the tight balance between supply and demand will continue in the foreseeable future, particularly in Shibuya area.
In Commercial Facilities, sales of suburban facilities have recovered to pre-COVID-19 levels, and city center facilities have also been exhibiting a recovery trend that includes inbound demand.
At the same time, we will continue to closely monitor the situation surrounding the impact of a steep rise in electric power prices and personnel shortages at tenants.
In the condominium market, customers continue to have an appetite for acquisition, owing partly to low interest rates.
While we must pay close attention to trends in interest rates on residential loans, at present, the variable interest rates used by most customers have not risen, and sales continue to trend along favorable lines.
In the Renewable Energy Business, while the market is continuing to expand amid the trend toward decarbonization, competition to acquire new projects is intensifying.
Additionally, as prices of electric power have risen recently, new demand for PPA models, etc., has become more notable.
In Hotels, RevPAR at Tokyu Stay recovered to pre-COVID-19 levels thanks to domestic demand and inbound demand generated by the easing of regulations.
We anticipate that inbound demand and so forth will show future recovery in FY2023.
In Real Estate Agents and the market for transactions, the transaction market continues to be brisk regardless of the type of asset. While there are some concerns that interest rates will rise and whatnot, we foresee the strong-performing environment in the market for transactions to continue for the time being.
Condominiums, Hotels, Real Estate Agents and sales of assets are progressing beyond our estimates at the time we formulated our medium-term management plan.
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