At the construction site of a newly built home, work was still underway.

Reporter
“This is a house that’s scheduled to be handed over in July, but construction work is still ongoing, and the scaffolding hasn’t even been removed yet.”

There are only about two months left until the planned handover. The contractor says work that should normally have already been completed is facing major delays.

Blue tapes can still be seen everywhere in the house.

Reporter
“The upper section has already been filled in, but the lower section has been left open because there aren’t enough materials.”

What’s causing the problem?

KURASU Homebuilder CEO 
“As tensions in the Middle East continue to affect naphtha supplies, orders for construction materials have gradually been suspended, and some products are no longer available at all.”

As concerns grow over supplies of petroleum-derived naphtha due to tensions in the Middle East, this construction company says it has been struggling since last month to secure building materials made from naphtha.

The materials that arrived on this day will allow to work for now, but they still fall short of the amount needed.

Some parts of the construction may not be completed on time, potentially affecting the scheduled July handover.

And that’s not all.

KURASU Homebuilder CEO
“Price hikes are already guaranteed. We’ve been told that petroleum-based products will go up by 30, 40, even 50 percent. It’s really becoming a major headache. We honestly don’t know what’s going to happen from here.”

The impact is spreading across the entire construction industry.

Umano Erika NTV Reporter
“This is a newly built condominium currently under construction. Buyers have reportedly been notified that there is a possibility the handover could be delayed.”

This high-rise condominium in Tokyo. Residents are not scheduled to move in until August next year — more than a year ahead.

However, the developer, Mitsui Fudosan, notified buyers that shortages of construction materials and other supplies could delay the handover date.

Several other real estate companies have issued similar notices as well, although all say that no delays have been officially confirmed at this point.

Concerns were also raised at a construction industry trade show held in Tokyo.

StoJapan Sales Manager
“With the situation becoming what it is, we’re seeing a surge in last-minute demand, and supply conditions have become extremely tight. So many materials are becoming difficult to procure that construction projects as a whole are being delayed. We’re really wondering whether things are going to be okay.”

The shortage of insulation materials made from naphtha is reportedly affecting not only new construction projects, but renovation work as well.

And here’s the industry’s honest sentiment…

SUGAR VILLAGE CEO
“Whenever we meet with others in the industry, all we hear is how exhausted and overwhelmed everyone is. The industry wants the government to figure out somehow and restore distribution back to normal.”

A growing sense of crisis is spreading across construction sites.

So how does the government view the situation?

Chief Cabinet Secretary Kihara Minoru
“At this point, we have not received reports indicating any immediate supply problems involving petroleum-related products, and we recognize that Japan as a whole has secured the necessary supply volume.”

Chief Cabinet Secretary Kihara Minoru emphasized that the government is identifying the causes of distribution bottlenecks involving paint and housing equipment and is working to resolve them one by one.

With the situation in the Middle East still uncertain, how far will the impact on housing spread?