Market Chatter: Japan Property Developers Flag Possible Condo Handover Delays
Major Japanese developers are warning condominium buyers about possible construction delays as supply disruptions linked to the Middle East conflict tighten availability of building materials, Nikkei reported Tuesday.Mitsui Fudosan (TYO:8801) unit Mitsui Fudosan Residential has informed customers in several projects, including a Tokyo high-rise complex with about 2,000 units, that handover schedules and some materials could change because of supply uncertainty. The company said no delays have occurred so far, according to the report.The closure of the Strait of Hormuz has disrupted supplies of petrochemical-based materials such as insulation, paint and water pipes, pushing up costs and limiting orders, the report said.Tokyu Fudosan (TYO:3289) said it is also alerting buyers to possible changes in delivery schedules as supply-chain disruptions and higher material costs persist, according to the report.Mitsubishi Estate (TYO:8802) unit Mitsubishi Estate Residence and Tokyo Tatemono (TYO:8804) have issued similar notices, while Nomura Real Estate (TYO:3231) unit Nomura Real Estate Development said it would notify customers if delays become likely, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)