Japan housing starts down 20.7% in March, up 0.3% in FY2008

April 30, 2009
By Ken Worsley

According to data released earlier today by the Ministry of Land, Infrastructure, Transport and Tourism, new housing starts in Japan fell 20.7% in March compared to a year ago. This was the fourth consecutive month of decline on a year-on-year basis, and the total amount of new floorspace declined by 22.9% against a year ago. By category, owner-occupied home starts declined 13.1%, falling for the sixth straight month. Rental home starts fell 11.2% for the fourth consecutive month of decline, and new condominium starts dropped a whopping 42.1%, also for the fourth consecutive month.

In a separate report, the ministry also announced that new home starts in fiscal 2008 stood at 1,039,180, up 0.3% from FY2007. This was the first increase seen in two years. The number of homes built for owners increased by 0.4% to 310,664, while the number of rental homes started increased 3.2% to 444,747. The number of condominium units started increased 3.5% to 272,680 - though the strongest part of this increase was amongst units of cheaper construction.

The total amount of floorspace created in FY2008 was up 2.3% against the previous year, showing the first increase in two years.

Filed Under Economic Reports, Real Estate