B.C. contractors bucked a national trend in September by taking out $651.8 million worth of building permits — a 7.2-per-cent increase over August, Statistics Canada reported Thursday.

The total value of building permits issued across Canada fell by 3.3 per cent to $4.4 billion, the first time in seven years that national permit values have fallen for three consecutive months.

B.C. permit values rose on the persistent strength of residential construction across the province. Residential permit values in September increased by 16.8 per cent to $471.1 million, while the value of non-residential construction fell by 11.7 per cent to $180.7 million.

Vancouver Regional Construction Association president Keith Sashaw said he’s not concerned by short-term dips in non-residential construction because the long-term outlook looks strong.

“There will be periods of ups and downs on a monthly basis but all of our members tell us the projects they’re working on are up and architects are busy now doing a lot of the preliminary work that’s done before you get to the permit stage,” he said.

The value of B.C. residential permits issued during the first nine months of this year increased by more than 37 per cent to $4.5 billion while the value of non-residential permits rose by 6.4 per cent to $1.6 billion.

Nationally, residential permit values rose by 16.3 per cent during the nine-month period to $27.2 billion but non-residential permits dropped by 5.9 per cent to $13.6 billion.

Sashaw said some of the strongest sectors of the B. C non-residential construction market include retail and office construction.

He said the construction of institutional projects like schools has clearly slowed down in the past nine months but noted B.C. can still expect about $16 billion worth of new non-residential construction projects in the next seven years and just $600 million of that is directly related to the 2010 Olympics.

Major projects slated for completion by 2011 include the RAV line, the Vancouver convention centre expansion, a new hotel near the convention centre and expansion projects at the Port of Vancouver, the University of B.C., Simon Fraser University and Vancouver International Airport.

Greater Vancouver Home Builders Association chief executive Peter Simpson said it’s no surprise the value of B.C. residential permits continues to outpace the Canadian average because B.C. is expected to be the only Canadian province next year to record higher housing starts.

“The economy is strong, there’s a high level of consumer confidence and we’re getting immigration internationally and from other provinces now,” he said.

But Simpson noted the resale housing market has fallen off in recent months and the number of potential buyers visiting new homes has also decreased in certain markets.

“We’re probably going to follow the slowing trend that’s happening in the resale market but it won’t happen at a rate that will raise any alarm bells for us,” he said. “Frankly, builders don’t see anything wrong with taking a breather now and it could be a good thing.

“It gives everybody a chance to get caught up and start planning their next projects.”

Simpson said builders are walking a tight line now on the issue of new house prices because rising costs are putting upward pressure on prices but they know they can’t push them a lot higher because that would turn a lot of consumers away.

THE BIG BUILDUP:

Building permits have fallen for three months in a row across Canada, dropping 3.3% in September to $4.4 billion, but B.C. is out of step once again, recording a 7.2% increase to $652 million and continuing a blistering pace of new construction in 2004.

Vancouver meanwhile, recorded the largest year-to-date percentage increase in building permits of any major city in Canada.

Value of building permits, % change, Jan./Sept. ’04 vs. same period last year

Vancouver: +38.4

Calgary: +0.1

Toronto: -0.5

Montreal: +21.1

Halifax: +4.1

St. John’s: +38.2

Source: Statistics Canada

© The Vancouver Sun 2004