— See Separate Table For Details of Individual Forecasts
TOKYO (MNI) – Housing starts in Japan are expected to have risen
5.9% on year in January, which would be the eighth consecutive monthly
increase, according to the median forecast of analysts surveyed by
Market News International.
The Ministry of Land, Infrastructure, Transport and Tourism will
release the data at 1400 JST (0500 GMT) on Monday, Feb. 28.
“The January data will confirm that the pickup in housing starts
has continued, thanks to the government’s measure (tax credit) to
encourage buying homes and the gradual improvement in income and
employment conditions,” said Akiko Kosugi, economist at Dai-Ichi Life
Research Institute.
Housing starts rose 7.5% on year in December, 6.8% in November,
6.4% in October and 17.7% in September.
On a seasonally adjusted annualized basis, housing starts are
expected to have totaled 875,000 units in January, up from 861,000 in
December, and the highest level since 910,000 in January 2009.
Some data released recently underlie the prediction that housing
starts will improve further.
Housing permits issued by the land ministry, which is seen as a
leading indicator for housing starts, rose 6.5% y/y in December, the
14th straight monthly y/y gain.
The ratio of new condominiums on which purchase contracts have been
signed compared to the total supply of new condominiums stood at 73.3%
in January, staying above 70% for the 13th straight months. Figures
above 70% are widely seen as indicating steady demand.
Housing starts fell to a recent bottom of 775,000 units in fiscal
2009.
skodama@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4838 **
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