01/14/2015
Publish Date Monday, December 08, 2014
VANCOUVER, December 8, 2014 – Total building permit values in the Lower Mainland-Southwest region shot up 109 per cent in October 2014 to set a new record for the region, according to Vancouver Regional Construction Association’s regional analysis of today’s Statistics Canada Building Permit Report.
“This month’s permit numbers were significant due to large gains in public and commercial permit values,” said Fiona Famulak, president of the Vancouver Regional Construction Association (VRCA). “This is the first time that we have seen total permit values break the $1 billion mark, and surpassed the previous record set in November 2006 of $956.1 million. We attribute the bulk of this jump in values to medical facilities in the institutional-government sector, which is likely the permit for the Children’s and Women’s Hospital in Vancouver, and hotel and restaurant permits in the commercial sector to a lesser extent.”
Total permit values in October 2014 rose to $1.223 billion compared to $585.8 million in September 2014. Non-residential permits rose 522 per cent to $691 million in October from $111.1 million in September, with institutional-government permits soaring 1,999 per cent to $325.1 million from $15.5 million and commercial permits jumping 331 per cent to $357.2 million from $82.9 million, while industrial permits declined 32 per cent to $8.6 million from $12.7 million. Residential permit values rose 12 per cent to $531.9 million from $474.7 million during the same period.
“While this is good news, it should be noted that the set of events that led to this new record does not necessarily indicate a boom in the regional economy or in non-residential real estate, as public permits are not subject to the same market forces as private permits, and the large gain in commercial permits is likely project–specific rather reflective of a market-wide investment upswing,” said Famulak. “October’s surge will likely not be repeated in November, and a large decline would be typical.”
Total building permit values were 12 per cent higher at $6.565 billion in the first ten months of this year compared to $5.886 billion in the first ten months of last year. After October’s surge, VRCA’s 2014 forecast for building permits sees values coming in ahead of the 2013 level, with a moderate gain likely.
Regional Building Permit Highlights:
Total permit values in October 2014 rose 109 per cent to $1.223 billion compared to $585.8 million in September 2014.
Total non-residential permit values were up 522 per cent in October 2014 to $691 million compared to $111.1 million in September 2014.
Commercial permits rose 331 per cent to $357.2 million from $82.9 million.
Industrial permits dipped 32 per cent to $8.6 million from $12.7 million.
Institutional-government permits jumped 1,999 per cent to $325.1 million from $15.5 million.
Residential permit values were up 12 per cent to $531.9 million in October 2014 from $474.7 million in September 2014.
Total building permit values were 12 per cent higher at $6.565 billion in the first ten months of 2014 compared to $5.886 billion in the first ten months of 2013.
Non-residential permits were 33 per cent higher at $2.181 billion from $1.644 billion last year.
Residential permit values were three per cent higher at $4.384 billion from $4.243 billion last year.
