Economists dampen hopes of sustained revival
Province
The value of building permits issued in B.C. jumped 26.4 per cent between April and May, driven by a 69.8-per-cent increase in the non-residential sector, Statistics Canada says.
In the Vancouver area, the value of permits rose 42.1 per cent, while Abbotsford-Mission saw a 14.9-per-cent increase, and Kelowna a 131-per-cent jump, the federal agency said yesterday.
Across the country, the number of building permits issued in Canadian municipalities soared in May, but economists warned the flurry of activity won’t last.
StatsCan said the value of building permits issued in May surpassed the $5-billion mark for the first time since October. That represents a whopping 14.8-per-cent hike over April, said Charmaine Buskas, senior economics strategist with TD Securities.
“This report is at odds with expectations, but can be mostly explained by the massive increases in two main subcomponents — multi-family units and institutional permits,” Buskas said. “Clearly, builders were not scared off by the weak macro-economic backdrop, and in fact were helped by government spending.”
However, she said, “This pace of rising activity is unlikely to continue.”
Municipalities approved 13,087 new dwellings in May, an increase of 22.1 per cent, reflecting an 40.5-per-cent increase, or 7,948 multi-family units. The number of single-family units approved rose 1.5 per cent to 5,139.
“All provinces, except for Nova Scotia, reported increases in multi-family construction intentions,” StatsCan said. “Intentions nearly doubled in Ontario compared with April.”
The value of permits in the residential sector have increased for three consecutive months, the agency said.
Residential building intentions rose 14.4 per cent to $2.6 billion, with Ontario accounting for most of the increase.
In the non-residential sector, the value of permits rose 15.3 per cent to $2.4 billion following a 12.9-per-cent decrease in April.
The building permits survey covers 2,400 municipalities representing 95 per cent of the population and provides an early indication of projected building activity.
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