Last year’s housing starts in Japan 8% short of 2013

The Japanese housing market continues to stagnate. As figures provided by the country’s ministry for construction suggest, 816,000 housing units were started last year – 8% fewer than in 2013. Particularly in the period from last May onward, housing starts dropped by 9-15% yoy. The introduction of an VAT-increase of 3% might play a key role in this development, experts believe.

Due to the rapid decline of the Japanese yen, selling prices of European softwood lumber products increased considerably. With the demand of lumber being uncertain, wholesalers were reluctant to place new orders in November which contributed to massive declines in exports year-to-date: As for softwood lumber, nearly all countries lost volumes in the first eleven months of 2014 – especially Finland (down 42% to 799,000 m³), Sweden (down 40% to 646,000 m³) and Austria (down 37% to 234,000 m³), whereas Romania sent more (up 17% to 323,000 m³), the Japan Lumber Journal reports.

With a total of 590,000 m³ in the first eleven months, also European laminated timber bound for Japan fell 23% short of 2013. For the first time in many years, Austria’s contingent of this product clearly fell below the 10,000 m³ mark: The 8,700 m³-shipment in November contributed to a 58%-slump yoy of overall shipments between January and November.