29 March 2002, 09:36  Japan Feb Housing Starts -2: Likely To Worsen

TOKYO (Dow Jones)--Housing starts in Japan rose 2.8% in February from a year-earlier, the government said Friday, beating economists' expectations for a drop of 0.4%. The data mark a second straight month of rises but are likely a pay back for five consecutive months of falls. With unemployment expected to remain high and incomes low owing to ongoing corporate restructuring to cope with economic downturn, housing starts are likely to remain depressed. Starts rose 3.5% in January and fell 12.9% in December, 1.2% in November and 3.3% in October. Housing starts totaled 85,775 units in February, or 1.184 million units annualized. Private housing starts for individuals' homes in February fell 12.2% to 26,401 units, while rental housing rose 7.1% to 29,394. Multi-unit dwellings rose 16.1% on year to 29,281. Multi-unit starts include those of condominiums.

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