Housing: Three Power Builders Recap: Limited Middle East Effects, but Lacking Last Year's Momentum

Research evidence excerpt

Housing: Three Power Builders Recap: Limited Middle East Effects, but Lacking Last Year's Momentum

Idea

June 8, 2026 06:30 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MHousing | Japan Toshiyuki Anegawa

Equity Analyst

Three Power Builders Recap: Toshiyuki.Anegawa@morganstanleymufg.com +81 3 6836-8914

Limited Middle East Effects, but

Lacking Last Year's Momentum Housing

Japan

S/D remains favorable due to low new-build inventories, and Industry View In-Line

earnings are healthy. Middle East-related growth in prime costs What’s Changed

Open House Group (3288.T) From To

remains a risk, but supply chain disruption is limited. Of the 3, Price Target ¥10,900 ¥8,750

KATITAS as a specialist in pre-owned homes faces relatively KATITAS (8919.T) From To

modest risk from prime cost growth for example. Price Target ¥3,500 ¥3,700

Iida Group Holdings (3291.T) From To

Key Takeaways Price Target ¥2,500 ¥2,050

We stay EW on KATITAS and Open House Group, UW on Iida Group HD.

Continuing low levels of new-build detached home inventories make for a

favorable supply/demand balance.

Supply chains are not currently seeing any Middle East-related disruption.

We think the Middle East situation in general will place both OHG and Iida

relatively favorably.

Impacts on KATITAS should be milder still as it has honed renovation skills.

Business climate, focus points: New-build detached inventories remain low and

earnings are currently generally healthy, with limits on new supplies by local

builders in particular still supporting a favorable S/D climate for leading new home

builders and KATITAS as a vendor of pre-owned homes. Despite concerns for supply

chain disruption and higher materials prices due to the Middle East situation, group