News On Japan

Japan Home Prices May Rise 30%

TOKYO - A shortage of naphtha, a key petrochemical feedstock used in a wide range of products, is pushing up the cost of housing materials in Japan and raising concerns that home prices could climb by as much as 30%.

Businesses across multiple industries say petroleum-based products are no longer arriving in sufficient quantities, while delays in supplies are beginning to disrupt operations from supermarkets to home construction sites.

The government has stressed that the issue is one of temporary distribution bottlenecks rather than an overall lack of supply. But companies on the ground say the situation remains severe.

Even everyday household goods are being affected. Supermarkets have been notified of price increases for plastic wrap, gloves and trays, forcing retailers to cut costs where possible, including reducing decorative plastic packaging.

The impact is particularly acute in the housing sector.

At one exterior wall renovation site, work was halted because sealant materials had not arrived. At another property requiring urgent roof leak repairs, a shortage of waterproof sheeting forced construction to stop.

Contractors warn that if materials cannot be secured soon, some firms may have no choice but to suspend operations.

Naphtha, produced from crude oil, is used extensively in residential construction. It is found in gutters, drainage systems, adhesives beneath tiles, wallpaper, switch plates, insulation and plumbing materials.

Builders say notices of price hikes and shipping restrictions are arriving one after another from suppliers.

One company reported that waterproof sheeting used beneath roofs is set to rise 50%, while insulation installed under floors has already been marked for a 40% increase.

Manufacturers of housing equipment have also begun suspending new orders for some unit baths, creating further delays in home completions.

Industry executives say supply chain disruptions in one area quickly spread to the rest of the sector.

One housing company said it plans to absorb higher material costs until June, but may pass them on to customers afterward.

'We think housing prices could rise by around 20% to 30%,' a company representative said. 'No one can predict what comes next.'

The government maintains that Japan has secured the necessary volumes of crude oil and petroleum products, including naphtha.

Economy minister Ryosei Akazawa said the shortages stem mainly from congestion in distribution channels and that coordination among suppliers should ease the bottlenecks nationwide.

However, trade groups remain unconvinced.

Representatives of the coatings industry said only about 3% of companies were able to procure thinner products used in paint applications through normal channels.

Analysts note that even if logistical bottlenecks are resolved, uncertainty over global crude supply and higher import prices could keep costs elevated for an extended period.

The impact may spread well beyond housing. Rising fertilizer prices could feed through to food costs, while small and midsize manufacturers may struggle to continue operations if they cannot absorb further increases.

Critics have also called on the government to provide clearer guidance.

Industry leaders say businesses need a concrete timeline—such as whether shortages may ease by June or July—rather than repeated assurances that the situation is under control.

Japan imports roughly 40% of its naphtha needs from the Middle East. With those supplies disrupted, companies warn that relying on inventories and emergency procurement alone may not offer a lasting solution.

Source: TBS

News On Japan
POPULAR NEWS

Strong Typhoon No. 18 was gradually moving away from Okinawa and the Amami Islands on August 26 after disrupting flights and bringing violent winds, rough seas and heavy rain, although Okinawa's main island and Amami Oshima remained at risk of sudden downpours, powerful gusts and waves exceeding 6 meters through around midday. As of 4 a.m. on August 26, the typhoon was located about 80 kilometers west-northwest of Okinoerabu Island and was moving west-northwest at 15 kilometers per hour.

A series of mysterious illegal dumping incidents involving about 39 kilograms of sliced bread has been reported around Mount Daisen and other parts of Tottori Prefecture in August, with officials investigating whether the food may have been deliberately placed to attract wild animals.

An 85-year-old couple have donated a combined 400 million yen to Osaka City with a request that the money be used to create a giant Myaku-Myaku statue about 20 meters tall at the former site of the Osaka-Kansai Expo, envisioning a landmark that could become a lasting symbol of the event and of renewed prosperity for Kansai and Japan.

Lawson plans to cut prices on its main line of onigiri rice balls by 10 yen from September 29 as falling rice prices begin to feed through to retail costs.

Police have established a temporary police post in the whaling town of Taiji, Wakayama Prefecture, ahead of the September 1 opening of the annual drive hunt for whales and dolphins.

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo stocks fell on August 25, with the Nikkei 225 closing at 64,980.53, down 0.8%, as investors sold semiconductor and electronics shares ahead of Nvidia’s earnings while a weak yen, elevated bond yields and renewed U.S. pressure on Iran kept risk appetite subdued.

Japan's traditional neighborhood public baths are struggling with rising fuel, labor and operating costs, but unlike most businesses they cannot freely raise prices because admission fees remain regulated under a postwar price-control law introduced in 1946.

Tokyo stocks fell on August 24, with the Nikkei 225 closing at 65,528.09, down 488.27 points, or 0.74%, as global bond-yield pressure and caution ahead of Nvidia’s earnings triggered selling in artificial intelligence and semiconductor-related shares, even as the broader TOPIX edged higher.

Suzuki has unveiled a prototype of its first kei-class electric vehicle, the e SKY, which is scheduled to go on sale during the current fiscal year with a driving range of 310 kilometers, among the longest offered by a domestically produced kei EV.

Following the fare revision, a labor union representing taxi drivers in the prefecture and other groups held a news conference calling for the proportion of operating revenue paid to drivers to be raised from its current level to at least 60%.

China's exports of rare-earth magnets to Japan fell by more than half in July from a year earlier, while shipments of tungsten carbide remained at zero for a sixth consecutive month, according to trade data released by Chinese customs authorities.

Japan's nationwide core consumer price index rose 1.8% in July from a year earlier, with the pace of inflation accelerating for a second consecutive month as higher food prices and a rebound in energy costs outweighed a sharp decline in rice prices.

Mitsubishi Electric said on August 20 that it will acquire U.S.-based PCI Energy Solutions, a developer of software used to manage electricity trading and other energy operations, in a deal worth about 220 billion yen, the largest acquisition in the Japanese company's history.