AI Data Insight
In the first quarter of 2026, Japan's nominal residential investment recorded 7152.2 billion yen. Although it slightly decreased by 1.76% from the previous quarter, the year-over-year growth rate reached 22.9%, indicating that the impact of the previous construction law amendments has faded. Coupled with the latest release of Japan's Q1 real GDP outperforming expectations, housing and personal consumption have become the key to supporting domestic demand. Looking ahead, the effectiveness of the Shunto wage hikes translating into real purchasing power and potential interest rate hikes by the Bank of Japan will be the core variables driving medium- to long-term buying sentiment in the housing market.