‘This year will have highest number of starts ever recorded’
Wendy McLellan
Province
B.C.’s construction boom shows no sign of slowing despite a dip in the number of building permits issued by municipalities during April, according to local industry watchers.
A Statistics Canada report released yesterday shows that builders took out 20 per cent fewer permits in April than in March. Permits for non-residential construction were down 30 per cent, while residential intentions dropped nearly 16 per cent. The total value of permits issued in April fell $82.2 million to $832.9 million.
But the number of permits issued so far this year has increased a hefty 8.5 per cent compared to the first four months of 2005, matching the national average for the same time periods. B.C. recorded a 12-per-cent jump in residential permits and a 1.7-per-cent increase in non-residential permits in the first quarter of the year compared to the same period last year.
“Construction has some volatility month to month, but if you look at the year-over-year figures, B.C.’s numbers are strong,” said Keith Sashaw of the Vancouver Regional Construction Association. “March was one of the best months on record, so we’re coming off a very high level of activity.
“There is nothing in these numbers that causes alarm — everyone in the construction industry is working full out and we expect that to continue.”
In fact, based on planned, non-residential projects, Sashaw said construction in the sector is expected to remain strong until the end of 2010 and likely into 2011.
“This is becoming repetitive,” Peter Simpson of the Greater Vancouver Home Builders’ Association said. “This year is already higher for the first four months than for the same time last year, and even if activity moderates, it will be a very successful year.
“But if things continue like this, this year will have the highest number of housing starts ever recorded. There is no shortage of work.”
Nationally, construction intentions cooled in both residential and non-residential sectors in April, according to the StatsCan report. Builders took out $5 billion in permits, down 10.6 per cent from March.
During 2006’s first four months, Vancouver, Calgary and Edmonton recorded the largest increases compared to 2005, and the housing market was the main driving force in all three centres.
© The Vancouver Province 2006
