Analysts are worried the slump in housing starts caused by stricter inspections will slow economic growth.
Credit Suisse Group lowered its growth estimate to 1.7 percent for the year ending March 31, down from the previous forecast of 2.9 percent, citing a drop in residential investment. Macquarie Bank Ltd. expects the expansion to slow to 1.9 percent, compared with a prior projection of 2.5 percent.
The government tightened the regulations in response to public outrage over the discovery in 2005 that dozens of hotels and condominiums designed by Hidetsugu Aneha risk collapse in a serious earthquake. The buildings were constructed with data the Chiba-based architect had fabricated to make it appear they were structurally sound.
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