Housing starts in June rose 0.3 percent from a year earlier to 101,502 units across the country, up for the second consecutive month, the government said Wednesday.
The Land, Infrastructure and Transport Ministry said the number of starts increased in two of the three main housing categories -- homes built for rent and those for sale, including condominiums.
But starts on order-made detached houses fell for the first time in three months.
"Starts on homes built for rent at good locations in urban residential areas are increasing," a ministry official said. "Though such starts have increased since last summer except for March, it is uncertain how long this trend will last."
The ministry estimates housing starts for the year ending next March at about 1.15 million.
Starts on homes for rent rose 5.7 percent from a year before to 39,965, up for the third consecutive month, while starts on those for sale, including condominiums, climbed 2.1 percent to 26,952, up for the second straight month. Starts on condominiums increased 6.8 percent to 16,973.
Starts on made-to-order detached homes fell 6.4 percent to 33,896.
The ministry said building activities were particularly strong in the Kinki region centering on Osaka and Kyoto, with overall starts rising 15.8 percent and starts on homes for rent soaring 38.6 percent.
In the Tokyo area, overall starts rose 3.7 percent, with starts on homes for rent climbing 9.9 percent.