Japan's housing starts increased at a faster pace in February, data from the Ministry of Land, Infrastructure, Transport and Tourism showed on Thursday.
Housing starts rose 6.3 percent yearly in February, following a 2.1 percent increase in January.
Economists had forecast an annual growth of 1.1 percent. This was the highest since October last year.
Annualized housing starts fell to a seasonally adjusted 872,000 in February from 820,000 in the previous month.
Data also showed that construction orders received by big 50 contractors declined 2.3 percent year-on-year in February, after an 11.0 percent increase in January. Construction orders dropped for the first time in six months.