EconomyPrivate housing investment in 2018 slightly increased, tax hikes impact relatively small

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The General Foundation Economic Research Institute (Minato-ku, Tokyo) and the General Foundation Economic Research Committee (Minato-ku, Tokyo) announced on January 30 the national accounts estimate (quarterly GDP preliminary report) for the period July – September 2018.

Nominal private housing investment in fiscal 2018 is expected to increase 16.3 trillion yen, 1.3% from the previous year, to 0.6 trillion 500 billion yen in fiscal 2019, down 0.9%. Due to the effects of national measures, the movement of demand due to the rise in the consumption tax rate is small and is forecasted to be 30 billion yen lower than the prospect as of October 2018.

The number of housing construction is estimated to be around 950 thousand units, which is a 0.9% increase in fiscal 2018, 2.97 million units in fiscal 2019, down 2.9%. Among them, owner-occupied households predicted that the number of households will increase by 3.6% in the year to 2.92 million units and that in fiscal 2019 will decrease by 5.1% to 277,000 units.

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