TOKYO--(BUSINESS WIRE)--Nomura Research Institute, Ltd. (NRI, TOKYO:4307), a leading provider of consulting services and system solutions, has announced its predictions*1 regarding Japan’s new housing starts and the renovation market scale from (FY) 2016 to 2030.
The expected number of new housing starts for FY2020 is approximately 790,000, for FY2025 is approximately 670,000, and for FY2030 is approximately 540,000 (Figure 1). The renovation market scale in the broad sense of the word*2 is predicted to level off at six trillion yen per year by 2030 (Figure 2; the market in the narrow sense of the word is around one trillion yen smaller).
*1 Predictions on new housing starts and the renovation market scale:
These predictions do not take into account the impacts of the consumption tax increase planned in the future (last-minute demand before the tax increase and downturn). Starts, etc. may be accelerated or postponed according to economic trends or other circumstances, leading to fluctuations in the actual number of starts and renovation market scale.
*2 Definition of “renovation market” in the narrow and broad senses:
In the narrow sense, “renovation market scale” refers to building additions and reconstruction work included under “new housing” in the housing starts statistics, as well as repair and maintenance costs for facilities, etc.
In the broad sense, “renovation market scale” includes the renovation market scale in the narrow sense with the amount including the purchase expenses for durable consumer goods related to renovation (such as air conditioners and furniture), interior products, etc. (according to the Center for Housing Renovation and Dispute Settlement Support).
For details, please visit: http://www.nri.com/~/media/PDF/global/opinion/papers_g/2016/20160728.pdf
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