July 14, 2008

Vancouver sees large increase in building-permit values in May 2008

RICHARD GILBERT

staff writer

Vancouver had the largest increase in the value of building permits of all Canadian cities in May, while Alberta and Saskatchewan experienced the largest provincial declines in construction intentions, according to a Statistics Canada report released this month.

The total value of building permits increased in Vancouver by 27.3 per cent to $ 697 million between April and May 2008.

The jump in planned construction activities was driven by a record monthly high in the non-residential sector.

“The last quarter of 2007 and the early months of 2008 saw a bit of a lull in the construction industry, but the current figures show a massive surge in May and a steady increase on the non-residential side,” said Keith Sashaw, president of the Vancouver Regional Construction Association (VRCA).

“The numbers clearly show the industry continues to adapt to challenges.”

The total value of building permits in B.C. increased 5.7 per cent to $1.1 billion between April and May 2008.

The non-residential sector increased 30.7 per cent to $ 494.7 million.

The large increase countered the decline in the residential sector, which fell 7.9 per cent to $642.7 million.

“It’s not surprising to see a strong increase in planned non-residential construction activity, while the value of residential building permits is falling,” said Philip Hochstein, president of the Independent Contractors and Businesses Association.

“We’ve had six years of strong growth in residential construction, and now we need infrastructure to service all these residential areas.”

Hochstein said that this enormous growth in residential construction in recent years created an infrastructure gap and now the market is responding by planning non-residential construction projects, such as schools, community centres and office complexes.

In contrast, Alberta and Saskatchewan experienced large declines in the dollar value of planned construction activity.

In Alberta, the total value of building permits fell by 3.7 per cent to $1.2 billion.

The residential sector dipped 5.5 per cent to $581.6 million and the non-residential sector fell 1.9 per cent to $ 641.4 million.

According to Statistics Canada, the decline in Alberta came largely from decreases in the value of institutional and multiple residential housing projects.

After a record high in April, construction intentions in Saskatchewan decreased 19.5 per cent to $183.9 million.

The residential sector dropped 4.1 per cent to $106.7 million and the non-residential sector fell 34.2 per cent to $77.2 million.

Print | Email | Comment