Voluntary Report - public distribution

**Date:** 4/9/2004

**GAIN Report Number:** JA4038

JA4038

**Japan**

**Solid Wood Products**

**February Housing Starts Up Again**

**2004**

**Approved by:**

![](media/image1.wmf)Kevin Latner

U.S. Embassy

**Prepared by:**

Masaoki Nagahama

**Report Highlights:**

Housing starts increased in January and February to 173,747, up 4.6%
from the previous year. Wood framed housing starts were up 3.2% while
the 2x4 construction sector was up 10.3% for the same period.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Tokyo \[JA1\]

\[JA\]

Japanese housing starts increased again in February, up 1.9% from the
same month the previous year to 84,950. Year-to-date starts through
February were 173,747 units, up 4.6% from the previous year.

Critical for the wood products sector, overall wood framed housing
starts in January and February were up 3.2% from the same period the
previous year, and up 10.3% for 2x4 construction.

The seasonally adjusted annual housing starts for 2004 is an estimated
1,173,000 units, up 12,917 units from the previous year.

As shown below, spec houses continued to lead the growth.

+------------------+----------+---+------------+---+-----------+------------+
| **Japanese       |          |   |            |   |           |            |
| Housing Starts - |          |   |            |   |           |            |
| Update through   |          |   |            |   |           |            |
| February, 2004** |          |   |            |   |           |            |
| (Units)          |          |   |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| Sector           | F        | \ |            |   | Jan.-Feb. | \% Change  |
|                  | ebruary, | % |            |   |           |            |
|                  |          | C |            |   | 2004      | (04/03)    |
|                  | 2004     | h |            |   |           |            |
|                  |          | a |            |   |           |            |
|                  |          | n |            |   |           |            |
|                  |          | g |            |   |           |            |
|                  |          | e |            |   |           |            |
|                  |          | ( |            |   |           |            |
|                  |          | 0 |            |   |           |            |
|                  |          | 4 |            |   |           |            |
|                  |          | / |            |   |           |            |
|                  |          | 0 |            |   |           |            |
|                  |          | 3 |            |   |           |            |
|                  |          | ) |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| **Total Starts** | **       | * |            |   | **        | **+ 4.6%** |
|                  | 84,950** | * |            |   | 173,747** |            |
|                  |          | + |            |   |           |            |
|                  |          | 1 |            |   |           |            |
|                  |          | . |            |   |           |            |
|                  |          | 9 |            |   |           |            |
|                  |          | % |            |   |           |            |
|                  |          | * |            |   |           |            |
|                  |          | * |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| -Custom housing  | 25,081   | \ |            |   | 48,752    | \- 1.3%    |
|                  |          | - |            |   |           |            |
|                  |          | 3 |            |   |           |            |
|                  |          | . |            |   |           |            |
|                  |          | 3 |            |   |           |            |
|                  |          | % |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| -Rental housing  | 32,157   | \ |            |   | 67,195    | \+ 7.0%    |
|                  |          | + |            |   |           |            |
|                  |          | 3 |            |   |           |            |
|                  |          | . |            |   |           |            |
|                  |          | 2 |            |   |           |            |
|                  |          | % |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| -Corporate       | 572      | \ |            |   | 1,200     | \- 40.8%   |
| housing          |          | - |            |   |           |            |
|                  |          | 4 |            |   |           |            |
|                  |          | 5 |            |   |           |            |
|                  |          | . |            |   |           |            |
|                  |          | 1 |            |   |           |            |
|                  |          | % |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| -Built-for-sale  | 27,140   | \ |            |   | 56,600    | \+ 8.9%    |
|                  |          | + |            |   |           |            |
|                  |          | 7 |            |   |           |            |
|                  |          | . |            |   |           |            |
|                  |          | 4 |            |   |           |            |
|                  |          | % |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| Wood-Framed      | 37,403   | \ |            |   | 72,988    | \+ 3.4%    |
|                  |          | + |            |   |           |            |
|                  |          | 3 |            |   |           |            |
|                  |          | . |            |   |           |            |
|                  |          | 2 |            |   |           |            |
|                  |          | % |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| **Wood Share     | **44.0   | * |            |   | **42.0%** | **- 0.5    |
| (%)**            | %**      | * |            |   |           | points**   |
|                  |          | + |            |   |           |            |
|                  |          | 0 |            |   |           |            |
|                  |          | . |            |   |           |            |
|                  |          | 5 |            |   |           |            |
|                  |          | p |            |   |           |            |
|                  |          | o |            |   |           |            |
|                  |          | i |            |   |           |            |
|                  |          | n |            |   |           |            |
|                  |          | t |            |   |           |            |
|                  |          | s |            |   |           |            |
|                  |          | * |            |   |           |            |
|                  |          | * |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| **By Framing     |          |   |            |   |           |            |
| Method**         |          |   |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| -Condominiums    | 16,096   | \ |            |   | 34,911    | \+ 4.2%    |
|                  |          | + |            |   |           |            |
|                  |          | 2 |            |   |           |            |
|                  |          | . |            |   |           |            |
|                  |          | 3 |            |   |           |            |
|                  |          | % |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| -Prefab. Housing | 11,128   | > |            |   | 24,942    | > \- 2.5%  |
|                  |          |   |            |   |           | >          |
| (Wood-framed)    | (23,204) | \ |            |   | (3,799)   | > (- 0.6%) |
|                  |          | - |            |   |           |            |
|                  |          | > |            |   |           |            |
|                  |          |   |            |   |           |            |
|                  |          | 4 |            |   |           |            |
|                  |          | . |            |   |           |            |
|                  |          | 4 |            |   |           |            |
|                  |          | % |            |   |           |            |
|                  |          |   |            |   |           |            |
|                  |          | ( |            |   |           |            |
|                  |          | - |            |   |           |            |
|                  |          | 2 |            |   |           |            |
|                  |          | . |            |   |           |            |
|                  |          | 0 |            |   |           |            |
|                  |          | % |            |   |           |            |
|                  |          | ) |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| **2x4            | *        | * |            |   | *         | **+        |
| Wood-framed**    | *5,684** | * |            |   | *11,584** | 12.2%**    |
|                  |          | + |            |   |           |            |
|                  |          | 1 |            |   |           |            |
|                  |          | 0 |            |   |           |            |
|                  |          | . |            |   |           |            |
|                  |          | 3 |            |   |           |            |
|                  |          | % |            |   |           |            |
|                  |          | * |            |   |           |            |
|                  |          | * |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| **By Floor Space |          |   |            |   |           |            |
| (1,000 square    |          |   |            |   |           |            |
| meters)**        |          |   |            |   |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| All Housing      | 7,611    |   | \+ 0.7 %   | 1 |           | \+ 2.8%    |
| Starts           |          |   |            | 5 |           |            |
|                  |          |   |            | , |           |            |
|                  |          |   |            | 1 |           |            |
|                  |          |   |            | 5 |           |            |
|                  |          |   |            | 1 |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| Wood-Framed      | 3,964    |   | \+ 1.6 %   | 7 |           | \+ 3.6%    |
|                  |          |   |            | , |           |            |
|                  |          |   |            | 6 |           |            |
|                  |          |   |            | 2 |           |            |
|                  |          |   |            | 4 |           |            |
+------------------+----------+---+------------+---+-----------+------------+
| **Wood Share     | *        |   | **+ 4.0    | * |           | **+ 0.4    |
| (%)**            | *52.1%** |   | points**   | * |           | points**   |
|                  |          |   |            | 5 |           |            |
|                  |          |   |            | 0 |           |            |
|                  |          |   |            | . |           |            |
|                  |          |   |            | 3 |           |            |
|                  |          |   |            | % |           |            |
|                  |          |   |            | * |           |            |
|                  |          |   |            | * |           |            |
+------------------+----------+---+------------+---+-----------+------------+

(Source: Ministry of Land, Infrastructure and Transport)

End of Report