TOKYO (MNI) – Housing starts in Japan jumped 20.5% in August from a
year earlier to a near two-year high of 71,972 units, posting the third
consecutive year-on-year rise, the Ministry of Land, Infrastructure,
Transport and Tourism said on Thursday.
The sharp increase in August, which is largely due to a rebound
from the 38.3% slump in August 2009, came in stronger than the consensus
call of a 10.9% rise (forecast range: +2.2% to +15.8% y/y). It followed
+4.3% y/y in July and +0.6% in June.
The government’s expansion of its reward program to cover spending
on greener home purchases and renovations appears to be providing some
support to housing construction.
The 20.5% rise in August was the largest y/y gain since +54.2% (the
second largest on record) marked in September 2009. August’s level of
71,972 units was the highest since 82,197 recorded in December 2008.
Housing starts fell -9.3% y/y in February and -8.1% in January 2010
and posted double-digit decreases throughout 2009.
The biggest year-on-year drop on record was -44.0% marked in
September 2007 while the sharpest gain was +67.6% seen in March 1972.
The seasonally adjusted annualized rate of housing starts stood at
829,000 units in August, up from 772,000 units in July.
The breakdown follows (year-on-year changes in the previous month
in parentheses):
— Owner-occupied houses +15.5% y/y at 29,036 units (vs. +4.4%),
the 10th consecutive monthly gain.
— Houses for rent +16.9% y/y at 25,892 units (vs. -5.9%), the
first y/y rise in 21 months.
— Condominiums and houses for sale +35.2% at 16,588 units (vs.
+27.3%), the sixth consecutive y/y rise.
tokyo@marketnews.com
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