Japan Construction Market 2015 Key Trends, Size, Growth and Analysis to 2019


Construction activity in Japan was weak in 2014, with the industry’s output contracting by 1.6% in real terms. However, the industry’s value is expected to pick up over the forecast period (2015–2019), with investment in public infrastructure, renewable energy, infrastructure and commercial projects, and improvements in consumer and investor confidence. In real terms, the industry’s output value rose at a Compound Annual Growth Rate (CAGR) of 0.32% during the review period (2010–2014), and this is forecast to accelerate to 1.21% over the forecast period.

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Timetric’s Construction in Japan – Key Trends and Opportunities to 2019 report provides detailed market analysis, information and insights into the Japanese construction industry including:

• The Japanese construction industry’s growth prospects by market, project type and type of construction activity

• Analysis of equipment, material and service costs across each project type within Japan

• Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Japanese construction industry

• Analyzing the profiles of the leading operators in the Japanese construction industry.

• Data highlights of the largest construction projects in Japan


This report provides a comprehensive analysis of the construction industry in Japan. It provides:

• Historical (2010-2014) and forecast (2015-2019) valuations of the construction industry in Japan using construction output and value-add methods

• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type

• Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)

• Analysis of key construction industry issues, including regulation, cost management, funding and pricing

• Detailed profiles of the leading construction companies in Japan

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Reasons To Buy

• Identify and evaluate market opportunities using Timetric’s standardized valuation and forecasting methodologies

• Assess market growth potential at a micro-level with over 600 time-series data forecasts

• Understand the latest industry and market trends

• Formulate and validate business strategies using Timetric’s critical and actionable insight

• Assess business risks, including cost, regulatory and competitive pressures

• Evaluate competitive risk and success factors

Key Highlights

• Japan’s sales tax rose from 5% to 8% in April 2014, which had a negative impact on buyers’ sentiment and the construction industry. According to the Land Institute of Japan, new condominium sales in Tokyo declined by 22.5%, from 56,733 units in 2013 to 43,961 units in 2014, whereas new condominium sales in Osaka declined by 24.6%, from 25,181 units to 18,980 units during the same period.

• With an aim to rejuvenate local economies and deliver the benefits of economic recovery to all regions, the government is focusing on developing the high-speed rail infrastructure network. Accordingly, the Japanese government signed an agreement in January 2015 to speed up the construction of two Shinkansen lines.

• In order to expand low-cost carrier networks and improve transport facilities that will support the country’s tourism industry, the government plans to construct Terminal 3 at Kansai International Airport, which includes the construction of a 33,000m2 floor area terminal building, parking spaces and a check-in building.

• Japanese residential property prices remained buoyant in 2014, after a strong market recovery in 2013, due to quantitative easing by the Bank of Japan (BOJ), the devaluation of the yen and increasing public infrastructure spending. According to the Land Institute of Japan, the country’s annual average residential property price index grew by 1.6%, from 100.8 in 2013 to 102.4 in 2014. The property prices varied across categories in 2014; the multi-family category recorded the largest increase, as condominium prices rose by 6.0%, compared to an increase in prices for the single-family housing category, as detached house prices grew by only 0.1% in 2014, compared to 2013 figures.

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