Daikyo Pace Property Gains on Abe’s Economic Plan: Tokyo MoverKathleen Chu
Japanese property stocks, including Daikyo Inc. and NTT Urban Development Corp., rose in Tokyo after the Nikkei newspaper reported Prime Minister Shinzo Abe will outline an economic plan promoting high-rise apartments.
Daikyo gained as much as 7.5 percent to 328 yen and traded at 315 yen as of 10:10 a.m. on the Tokyo Stock Exchange. NTT Urban advanced 4 percent to 123,700 yen. The 43-member Topix Real Estate Index rose as much as 2.9 percent and was up 0.2 percent.
Abe has pledged to end deflation to boost the world’s third-largest economy, including measures to revive the property industry, which has been struggling since an asset bubble burst two decades ago. He will seek to loosen rules in special zones in Tokyo to allow more high-rise apartments, Nikkei reported, without citing anyone. Abe is scheduled to speak on the growth plan details at 12:30 p.m. local time.
“It’s positive news for the residential sector,” said Hirokazu Anai, an analyst at JPMorgan Chase & Co. in Tokyo. “Easing the floor ratio will benefit city developers.”
Mitsui Fudosan Co., Mitsubishi Estate Co., Sumitomo Realty & Development Co., Tokyu Land Corp., Tokyo Tatemono Co., NTT Urban and Nomura Real Estate Holdings Inc., which own land reserved for condominium developments, are among those to benefit in the long run, Anai said.