Bruce Constantineau
Sun
A surge in non-residential building intentions boosted the value of all building permits issued in B.C. in February by 11.2 per cent to more than $849 million, Statistics Canada reported Thursday. StatsCan said the value of non-residential permits rose by more than 20 per cent to $287 million while the value of residential permits increased by about seven per cent to $562 million.
Vancouver Regional Construction Association president Keith Sashaw said Greater Vancouver, in particular, has experienced strong growth in all aspects of non-residential construction — industrial, commercial and institutional.
“We’re seeing strength across the board, which reflects a robust economy,” he said in an interview. “Olympic projects are coming on board, there’s a big demand for industrial projects and institutions like universities and hospitals are also very busy now.”
Greater Vancouver Home Builders’ Association chief executive officer Peter Simpson said the slight increase in residential building permits reflects the industry’s forecast that 2006 housing starts will match or fall slightly below last year’s levels, as builders are working flat out and face trades shortages which can delay projects.
“We don’t expect huge increases this year because we’re already at full capacity,” he said. “But there won’t be dramatic drops either.”
Simpson said that despite rising housing prices, the demand for new Lower Mainland housing remains as strong as ever, noting that a standing-room-only crowd of more than 800 people attended the association’s annual first-time home buyers’ seminar in Surrey this week.
“Buyers know that prices may flatten out but they still want to get in because they feel that over time, they will do all right in this market,” he said.
Sashaw said construction is a cyclical industry so there’s bound to be a slowdown in the future.
“But I don’t see it coming for quite some time,” he said. “Look at the major projects coming down and capital spending plans and activities on architects’ boards. Everything points to a good long run and we expect 2006 and 2007 will show continuing strength.”
Sashaw recently returned from a four-day recruitment drive in Europe, where his association interviewed skilled tradespeople interested in working in the B.C. construction industry. He is going over the resumes of at least 70 workers, including bricklayers, roofers, electricians, mechanical workers and floor layers. “Believe me, there’s a lot of interest in Europe and around the world in what’s going on in B.C.,” he said.
Statistics Canada said the total value of building permits in February rose by 3.6 per cent to $5.2 billion. Non-residential permits increased by 14.4 per cent to $1.8 billion while the value of residential permits fell 1.5 per cent to $3.4 billion.
THE BIG BUILD-UP:
