Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Misawa Falls After Finding Faulty Construction: Tokyo Mover

Nov. 18 (Bloomberg) -- Misawa Homes Co. had the biggest drop in nine months in Tokyo trading after the Japanese builder said cases of defective construction by its units were found.

Shares of Misawa Homes dropped as much as 8.9 percent to 1,504 yen, the biggest fall since Feb. 12 and were down 3.3 percent at 1,596 yen as of 10:52 a.m., local time. The stock has gained 26 percent so far this year, compared with the 39 percent advance by the 96-member Topix Construction Index.

Construction may not have been completed to specifications at 1,619 homes at three of its units, the company said in a statement dated Nov. 15 on its website. The defective homes were found at units in Chugoku area and Saga prefecture, both in western parts of Japan, and Hokkaido, north of the main Honshu island, it said.

“The biggest problem is reputation,” said Yoji Otani, a Tokyo-based real estate analyst at Deutsche Bank AG. “Homebuyers may avoid Misawa Homes in the short term.”

Misawa’s finding comes prior to the government’s plan to raise the consumption tax to 8 percent from 5 percent next April. Housing starts rose to an annualized 1.04 million units in September, the highest since September 2008, a land ministry report showed last month.

To contact the reporter on this story: Kathleen Chu in Tokyo at kchu2@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.