New condo sales was 12,180 last month while second hand condos sold 13,340. Japanese people used to prefer living in new houses and condos, but the trend seems to be changing. These old condos are renovated by the real estate developers or sometimes by the buyers. When the developers renovate, some started to issue an “evidence” to proof the safety and cleanliness of the used-houses, which is probably stimulating the demand.
Quite contrary, general contractors, or the Japanese construction companies are suffering a sharp decline in orders for 7 consecutive months. May orders of top 50 general contractors were -41.9% yoy.
If people do not buy new houses/condos and are shifting to the used market, the competitive landscape of the construction industry will change.