“Regeneration” Arises from New Construction Regenerating buildings back into society, we are fulfilling our responsibility as a builder. In our pursuit of this grand dream we launched “Livness,” a real estate stock business that spans the Daiwa House Group.

General Manager, Livness Business Promotion Department Daiwa House Industry Co., Ltd.

SOUJI HIRAI (photo, center)

April, 1983: Joined Daiwa House Industry and was assigned to the Single- Family Housing Sales Office at Osaka Head Branch

April, 2005: Appointed to Manager of Osaka Chuo Branch

October, 2012: Appointed to Manager of Toyama Branch (launched the “Kaji Share House” project)

April, 2017: Appointed to General Manager, Livness Business Promotion Department

Executive Officer Management Administration Headquarters Manager of General Planning Department In charge of Livness Business Promotion Daiwa House Real Estate Co., Ltd.

AKITSUGU MAMIYA (photo, left)

April, 1985: Joined Nihon Jyutaku Ryutu (current Daiwa House Real Estate)

April, 2001: Appointed to Manager, Hanshin Kobe Sales Department/ Rokko Branch

April, 2004: Appointed to Sales Promotion Manager

October, 2011: Appointed to Tokyo Branch Manager/ Planning Manager/ Sales Promotion Office Manager

April, 2013: Appointed to Executive Officer, Manager of Real Estate Purchase/ Corporate Business Department at Tokyo Office

April, 2020: Appointed to Executive Officer, Manager of General Planning Department, Management Administration Headquarters In charge of Livness Business Promotion

Real Estate Distribution Business Department at Head Office, Manager of Hiroshima Branch Daiwa House Real Estate Co., Ltd.

NAOKI NUMATA (photo, right)

April, 2004: Joined Nihon Jyutaku Ryutu (current Daiwa House Real Estate) assigned to Takatsuki Branch

April, 2015: Transferred to Head Branch

April, 2016: Appointed to Manager of Sales Section 1 at Head Branch

April, 2017: Appointed to Manager of Ibaraki Branch

April, 2020: Appointed to Manager of Hiroshima Branch (new store opening)

Souji Hirai leads the charge in the Livness businessSouji Hirai leads the charge in the Livness business

Anticipating the arrival of a
stock-type society

Spirit of Hearts

Whether it be automobiles or home appliances, the mission of a “maker” of goods has been to develop and introduce new products to the world. The Daiwa House Group, which is recognized as a house builder, to this day leads off with its newly constructed homes, while also offering condominiums, rental housing, and logistics, business and corporate facilities.

In Japan, however, the number of vacant houses has increased as a result of various societal changes—such as the concentration of population in the Tokyo metropolitan area and the aging of society with a declining birthrate—reaching 8.49 million units, or approximately 1.5 times the number in the 20 years following 1988*1.

The government, having taken a serious look at the situation, has shifted its stance from the premise of “new construction” to a focus on “existing homes,” or so-called “used homes” for indefinite long-term habitation. Predictions are that in 2040, one out of every three housing units supplied to the market will be existing housing*2.

With an eye toward the advent of a stock-oriented society, the Daiwa House Group was also quick off the mark to get into the business of regenerating existing buildings, including houses and condominiums. But here we had a big problem.

Let’s take a customer’s point of view. Suppose a customer who built a new house with Daiwa House Industry is transferred and wants to sell their home.

“Now, who should I ask to help out with this?” they would think. “Daiwa House seems to specialize in new construction, so my only option is to try to find a broker by myself, but with so many how should I go about choosing one...”

Of course, Daiwa House Group has many companies that handle existing buildings. We support customers in all aspects of real estate, including brokerage, purchase and sales, renovation, interior coordination, and rental management. However, as each company had been developing these services independently, there was no coordination among the companies, and before long, the relationship with customers had become disconnected.

*1 2018 Housing and Land Survey (Ministry of Internal Affairs and Communications)
*2 “The 2040 Housing Market” (NRI, announced June 9, 2022)

A friendly meeting with young employees who are the future of LivnessA friendly meeting with young employees who are the future of Livness

Eight companies overcome barriers
to become one

Spirit of Hearts

Eliminating the confusion of customers who say, “I don’t know where to go for advice,” requires the Daiwa House Group to literally work and make progress as “one.”

Let’s start with housing. We brought together eight Group companies*3, led by Daiwa House Industry, which builds and sells single-family housing and condominiums, and supporting this with distribution, Daiwa House Real Estate (“DH Real Estate”)*4. This was the first time such a large-scale cross-Group undertaking had been attempted since the Company’s founding.

We named the project “Livness,” wanting to make it into a one-stop shop for all existing house needs—selling, buying, rental and renovation. In this way, we could follow up with customers we had not previously been able to satisfy. Daiwa House Industry’s Hirai, who was the driving force behind the project, believed in this vision, but there was also a lurking feeling of trepidation.

Despite being members of the Group, each company has its own respective management policies. Business areas overlapped, and in some cases even competed with one another. When the kick-off meeting began, the discussion was divided into “general agreement or disagreement” on each issue. Akitsugu Mamiya of DH Real Estate also believed that “there is a possibility of overlapping operations and conflicts of interest among the companies.” However, when listening to Hirai, who believed in the ideals of the stock business and patiently engaged in dialogue with the representatives of each company, Mamiya became convinced that such fears were unwarranted. Later, with the understanding of each company, a team was eventually formed to create a Livness business that transcended corporate boundaries.

The team first set about creating a mechanism for Group collaboration. The challenge was to provide nationwide support. Daiwa House Industry’s single-family houses and condominiums are located throughout Japan, but some Group companies that support them operate mainly in urban areas, while others focus on Japan’s regions. However, providing a consistent quality of service throughout the country would be essential for Livness.

Therefore, in order to create a nationwide Livness network, team members traveled around the country to recommend several trusted companies from among 50 or 100 subcontractors in each region to form partnerships. Although the substance of Livness was not yet firmly established, they visited every corner of the country preaching the benefits of the stock business to Group company employees and subcontractors.

*3 Companies participating in Livness: Daiwa House Industry, Daiwa House Real Estate, Daiwa House Reform, Daiwa House Chintai Reform, Daiwa LifeNext, Daiwa Living, Cosmos Initia, DesignArc (as of February 2023)

*4 Known as “Nihon Jyutaku Ryutu” at the time, the name was changed to “Daiwa House Real Estate” in January 2023.

Consulting for a customer at a DH Real Estate storeConsulting for a customer at a DH Real Estate store

The best solutions for customers

Spirit of Hearts

In January 2018, “Livness” was officially christened as our stock business brand.

It takes time to instill new ideas. Daiwa House Industry employees needed to reform their mindset to one of supporting existing homes as generously as new houses. The business would not have been possible without the understanding of both the employees who sell in the field and those at Group companies who do not have contact with customers.

We therefore developed protocols, including an inter-Group referral system, as well as an education system with the cooperation of DH Real Estate, a pioneer in the industry. In fiscal 2020, we created a Livness Section within Daiwa House Industry’s Single-Family Housing Business Division, and as of February 2023, 95 Livness sales representatives are assigned to 62 locations nationwide.

Top management is also steadfast in its determination. Daiwa House Industry President Keiichi Yoshii showed his resolve by notifying all employees to put the Livness logo on their business cards. DH Real Estate displayed the Livness logo at the top of its stores’ signage, expressing its strong commitment to the core of its stock business.

When Livness was first launched, Naoki Numata, manager of the DH Real Estate Hiroshima Branch, was concerned that “the Group would be competing with each other for a single customer,” but those fears were dispelled.

Daiwa House Industry’s Hiroshima Office has business divisions for single-family houses, apartments, retail stores, construction, and environmental energy, and the Livness Section consolidates the various customer and housing information generated from these divisions. Information will also come in from the “General Living Desk” established on the web to provide easy access to questions about real estate.

The Livness Section and DH Real Estate share these ideas and consider which company should be in charge and what kind of proposal would offer the best solution for the customer. By actively sharing information, the expertise of each company is maximized. The success of the “Hiroshima Model” illuminates the future of the Livness business.

The large Livness logo greets customers in front of a storeThe large Livness logo greets customers in front of a store

Things don’t stop when development
is finished; we also work together
into the future

Spirit of Hearts

There are so many cases of benefiting from Group cohesiveness.

In the past, Daiwa House Industry sold approximately 800 housing units in the Katsugidai housing complex in Hiroshima. Among them were fixed-term leasehold houses, in which the land was owned by Daiwa House Industry, and the customers who leased the land built and owned the houses.

One home owner approached DH Real Estate, hoping that they would “sell my house.” Since the owners of the land and the building were different, this was quite a challenging case. However, DH Real Estate found a solution in concluding respective mediation contracts with Daiwa House Industry and the owner. Set prices for the land and building were established and sales activities commenced, with a buyer being found without difficulty. Furthermore, since the building’s initial warranty was about to expire, Daiwa House Reform performed repair and refresh work, while the warranty was also extended. The buyer’s customer was delighted and the seller’s customer was also satisfied.

We can support our customers in other ways as well. Things like recruiting and managing tenants when renting out homes, finding new homes to move into, and introducing facilities for the elderly. This attitude is expressed in the slogan “There are professionals for your home and life.” It’s not that we merely want to grow as a real estate broker. By staying close to our customers we will create a cycle whereby homes will be lived in and passed on into the future. This ideal is the driving force behind Livness.

Today, Livness has grown into a brand that encompasses not only housing, but also the real estate stock business, including logistics, business and corporate facilities. The Company is also involved in building renewal and conversion, as well as investment-oriented revitalized real estate.

Nonetheless, we still have a long road ahead of us until achieving our vision. Our founder always admonished us to “think far ahead to the future.” These words still guide us today. Things don’t end when a building is finished. We must continue to look far to the future of our customers’ lives, local communities, and the global environment, and continue to work together with them. This is the responsibility of the Daiwa House Group and the dream of all those involved in Livness.

*Stated information is as of February 2023.