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Japan's housing market has encountered a significant setback as the latest data reveals a sharp decline in housing starts for November 2025. According to figures updated on December 25, 2025, the housing starts have plunged to an alarming -8.5% when compared to the same period last year.
This unexpected drop comes after October's modest growth where the indicator held at 3.2% year-over-year. The dramatic shift suggests a challenging environment for Japan's real estate sector, further complicating the economic outlook as the year-end approaches.
Market analysts highlight potential factors such as increased construction costs, regulatory changes, or fluctuating demand as possible contributors to this decline. As stakeholders look towards recovery measures, the coming months will be critical in determining whether Japan's housing market can rebound from this contraction.
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