AI Data Insight
In the first quarter of 2026, Japan's nominal private residential investment reached 6,968.4 billion yen. Although it slightly retreated by 1.7% from the previous quarter, the year-over-year growth surged by 22.9%. Coupled with the upward revision of real residential investment in the latest second preliminary GDP report, this indicates that real housing demand remains robust. Looking ahead, high vigilance is needed regarding the potential impact on the housing market from oil price hikes driven by Middle East tensions and interest rate hikes by the Bank of Japan.