MNI Survey: Japan June Housing Starts Seen +5.1%, 3rd Gain

— See Separate Table For Details of Individual Forecasts

TOKYO (MNI) – Japanese housing starts are expected to have risen
5.1% on year in June, which will be the third straight y/y gain,
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 Friday, July 29.

Housing starts marked +6.4% y/y in May, +0.3% in April and -2.4% in
March.

Economists said consumers’ appetite for buying homes has not been
strong as their income conditions have not shown a clear improvement
while the economic outlook remains uncertain.

On a seasonally adjusted annualized basis, housing starts appeared
to have totaled 810,000 units in June, falling short of 815,000 in May
but higher than 798,000 in April.

Looking ahead, Takumi Tsunoda, senior economist at Shinkin Central
Bank, said, “Housing investment is expected to remain at low levels for
the time being.”

“We need some more time before seeing demand for the reconstruction
of quake-hit areas,” he said.

Housing starts are expected to rise 3.8% to 852,000 units in fiscal
2011, according to a projection by the Research Institute of
Construction and Economy.

skodama@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4838 **

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