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Urban Redevelopment Lays the Foundation for Resuscitating the Building Construction Market in Japan Finds Frost & Sullivan - Like most markets, the Japanese building construction market took a hit during the economic downturn in 2008 and 2009
Urban Redevelopment Lays the Foundation for Resuscitating the Building Construction Market in Japan Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Singapore, Singapore, 2010/01/20 - Like most markets, the Japanese building construction market took a hit during the economic downturn in 2008 and 2009.

   
 
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The market is likely to recover in 2010 with the introduction of Japan's supplementary budget that includes a stimulus package. However, it will make a slow progress with growth rates in the range of 1 to 2 percent, as the market is stable and heading toward saturation.

New analysis from Frost & Sullivan (environmental.frost.com), Strategic Analysis of Building Construction Market in Japan, finds that the market is likely to earn revenues of $102.22 billion by 2015.

In the current bleak conditions, market participants are looking for alternative revenue streams. The most viable remedy to this market scenario is urban redevelopment, as the country's demographics is changing and is showing an increasing incidence of single Japanese, which restricts the residential buildings market.

A negative population growth, lower consumer spending, and an unstable yen against major currencies also hamper the Japanese market.

"Additionally, the deflation of asset prices has created a 'negative wealth effect', which has dampened consumer and corporate investments in properties," says Frost & Sullivan Consultant Melvin Leong.

Acknowledging the increasing environment consciousness of people all over the world, builders are trying to lure investments back to the market by constructing energy-efficient houses and buildings that save energy or reduce the load required.

Furthermore, they are resorting to prefabrication, wherein the finished construction materials are manufactured and assembled pre-site. Participants will also adopt environment-friendly practices due to the incentives offered by the government for green building projects.

"The use of energy-efficient tools, green concepts, and sustainable solutions in buildings are critical factors in Japan's building construction," notes Leong. "As these practices are widely prevalent in Japan, market entrants must consider them prerequisites to gain a foothold in the market."

If you are interested more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Strategic Analysis of Building Construction Market in Japan is part of the Building Management Technologies Growth Partnership Services program, which also includes research in the following markets: Strategic Analysis of the building construction market in Australia, strategic analysis of green technologies market - energy efficiency (HVAC, BAS, and lighting), and CDM – strategic analysis for growth opportunities in Asia. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Strategic Analysis of Building Construction Market in Japan / P392

 
 
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Urban Redevelopment Lays the Foundation for Resuscitating the Building Construction Market in Japan Finds Frost & Sullivan

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