AI Data Insight
Latest data shows that Japan's nominal residential investment in the second quarter of 2026 reached 29.44 trillion yen, continuing to climb from the previous 28.90 trillion yen and setting a new record high. Although high interest rates and inflation caused a slight decline in "real" investment, nominal figures remained strong, fueled by soaring construction costs caused by labor shortages and record-breaking housing prices in Tokyo. In the short term, the market needs to monitor the suppressive effect of the Bank of Japan's subsequent interest rate hikes on real demand.