Lower Mainland Building Permits Surge
From VRCA. – The total dollar value of building permits issued by municipalities in the Lower Mainland-Southwest Region jumped up 52% in February 2015, increasing to $630.9 million compared to $416.3 million in January 2015, according to data released today by Statistics Canada.
Permits were boosted by both residential and non-residential activity, reported the Vancouver Regional Construction Association (VRCA), making up for below-trend activity over the past three months.
“The gain in non-residential permits was driven by a large jump in institutional-government permits and a 29% increase in commercial permits,” said Fiona Famulak, VRCA President. “Public permits rebounded from a very low January level but remained below recent trend levels.”
Metro Vancouver reflected the regional trend, issuing $585.7 million worth of building permits in February 2015, an increase of 58% compared to the $370.1 million issued in January 2015. Non-residential permits climbed 59% to $119.5 million and residential jumped 58% to $466.2 million.
In contrast, in Abbotsford total building permits declined, slipping 2% in February to $11.1 million from $11.4 million in January. Non-residential building permits rebounded 668% to $6.2 million from $0.8 million in January.
“In February, Abbotsford building permits were boosted by a rebound in non-residential permits, which was offset by the drop in residential permits,” said Famulak. “I don’t think this weak start to 2015 in residential permits is indicative of the year as a whole.”
Famulak expects the Lower Mainland-Southwest Region and the Abbotsford market conditions to further improve, setting the stage for new building investment in 2015. Record low mortgage rates, an improving economy, and rising population growth are a positive backdrop for more residential and non-residential building investments.
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