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This section discusses the environmental perceptions of our major businesses.
There have been no major changes since the announcement of financial results in November.
In the office market, there have been no major fluctuations in both vacancy rates and rents, and although the occurrence of strong and weak trends in each area continues, the characteristics of many growing companies, etc., and the Company's vacancy rate remains at a low level.
The supply-demand balance is expected to remain tight for the time being, especially in the Shibuya area.
In commercial facilities, facilities in suburban areas recovered to pre-Covid-19 levels, and facilities in urban areas are also on a gradual recovery trend.
On the other hand, we will continue to monitor the situation closely for the impact of soaring electricity rates and tenant labor shortages.
In the condominium market, there is continued customer appetite for acquisitions against a backdrop of low interest rates.
Although the trend of mortgage rates requires close monitoring, variable interest rates, which are currently used by the majority of customers, have not risen, and sales continue to be strong.
In the renewable energy business, while the market continues to expand in response to the decarbonization trend, competition to acquire new projects is intensifying.
In addition, new demand such as PPA is emerging as the need for renewable energy-derived electricity rises.
In the hotel business, RevPAR at Tokyu Stay exceeded the pre-Covid levels due to the recovery in domestic and inbound demand.
In the fiscal year ending March 31, 2024, we expect to capture further inbound demand, etc.
In the real estate agents and transaction market, the transaction market continues to be active regardless of asset types. Although there are concerns about rising interest rates and other factors, the market environment is expected to remain favorable for the time being.
Condominiums, hotels, real estate agents, and asset sales are progressing better than expected at the time the medium-term management plan was formulated.
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