TOKYO (MNI) – Housing starts in Japan rose 0.6% in May from a year
earlier to 68,688 units, the first year-on-year rise in two months, the
Ministry of Land, Infrastructure, Transport and Tourism said on Friday.
The latest figure came in weaker than the consensus call of a 1.5%
rise (forecast range: -3.0% to +6.5% y/y),
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.
“Since hitting bottom in August last year, there was a sign for an
improvement but (housing starts) have been soft recently,” the ministry
said, calling for a close look amid tough employment and income
conditions.
June’s rise followed -4.6% in May and +0.6% in April, the latter
being the first y/y rise in 17 months. Housing starts fell -9.3% in
February and -8.1% in January and posted double-digit decreases
throughout 2009.
The biggest drop on record was -44.0% marked in September 2007.
The seasonally adjusted annualized rate of housing starts stood at
750,000 units in June, up from 737,000 units in May.
The breakdown follows (on-year changes in the previous month in
parentheses):
— Owner-occupied houses +4.4% y/y at 27,656 units (vs. +4.8%), the
eighth consecutive monthly gain.
— Houses for rent -10.9% y/y at 24,871 units (vs. -13.5%), down
for the 19th straight month.
— Condominiums and houses for sale +24.6% at 15,705 units (vs.
+0.8%), the fourth consecutive y/y rise.
tokyo@marketnews.com
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