Building permits soar, but not in BC

Weak residential permits result in province’s 1.2-per-cent decline, to $666 million, in October. The value of building permits jumped far above expectations in October, led by both single-family and non-residential units, amid growing signs in Canada of an economic recovery.

Statistics Canada reported Monday that permits were up 18 per cent during the month to $6.1 billion, with values increasing in six provinces, led by Alberta and Ontario.

Most economists had expected permits to rise by just one per cent in October.

In B.C., the picture was not so rosy, as the provincial total was down 1.2 per cent for the month to $666 million, led by a four-per-cent decline in residential permits. Non-residential building permits were up 6.5 per cent.

Nationally, residential permits rose 3.8 per cent to $3.4 billion, the third consecutive monthly increase, Statistics Canada said.

“Ontario and Quebec accounted for much of the growth seen at the national level,” it said.

In the non-residential sector, permits jumped 42.4 per cent to $2.7 billion in October, after falling 9.2 per cent the previous month.
Within that sector, industrial intentions doubled in value to $709 million, fuelled by spikes in permits in Alberta, Ontario and Quebec, the federal agency said.

“After four monthly consecutive declines, the value of institutional building permits increased 50.9 per cent to $904 million,” it said.

“The gain was largely attributable to educational institution projects in Alberta, Saskatchewan, Quebec and British Columbia. Ontario had an increase in the value of permits for medical buildings.”

Commercial permits were up 15.3 per cent from September to $1.1 billion. The bulk of the construction is for office buildings and retail stores in Ontario, and warehouses in Saskatchewan, the agency said.

Meanwhile, applications to build single-family units rose for an eighth straight month, jumping 10.1 per cent to $2.4 billion in October, with building plans rising in every province except Nova Scotia and Prince Edward Island.

At the same time, multi-family permits fell 8.2 per cent to $1 billion in October, following a 34.3 per cent rise the previous month.

“British Columbia, Alberta and Nova Scotia had the largest declines, while Ontario posted the biggest gain in construction intentions for multi-family dwellings,” Statistics Canada said.

(Source: Vancouver Sun/Financial Post)