— See Separate Table For Details of Individual Forecasts
TOKYO (MNI) – Japanese housing starts are expected to have declined
6.3% in October, which would be a second straight year-on-year drop,
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 Wednesday, Nov. 30.
Housing construction will remain sluggish on growing uncertainties
about domestic economic growth and slow growth in job creation and
wages, said Masao Okayama, economist at Norinchukin Research Institute.
Housing permits issued by the ministry, which is seen as a leading
indicator of housing starts, have been weak, falling 6.7% on year in
September and 11.1% in August after rising 16.1% in July.
Meanwhile, the government has revived its temporary reward program
for buying energy-saving houses but economists said it is not having a
full impact on October housing starts as yet.
Reward points will be given to owners of greener homes under
construction or those being renovated to save energy consumption,
effective only from Oct. 21. The program will end on Oct. 31, 2012.
On a seasonally adjusted annualized basis, housing starts are
forecast by economists to have totaled 770,000 units in October, up from
745,000 in September.
skodama@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4838 **
[TOPICS: M$J$$$,M$A$$$,MAJDS$]