Total permit values slide as rise in residential permits not enough to offset non-residential decrease
Submitted – Building permit values in Abbotsford fell 46 per cent in September 2014 from August (seasonally adjusted), as significant declines in non-residential permit categories were noted, according to Vancouver Regional Construction Association’s regional analysis of today’s Statistics Canada Building Permit Report.
“While Abbotsford non-residential permits fell in all three categories in September, we see this largely as a one-off occurrence and not a sign of deteriorating market conditions or investor sentiment,” said Fiona Famulak, president of the Vancouver Regional Construction Association (VRCA). “Year-to-date permits, which are up 17 per cent, are a better indication of Abbotsford’s market activity.”
Seasonally adjusted non-residential permit values fell 77 per cent to $2.6 million in September 2014 from $11.3 million in August. Industrial permits dropped 70 per cent to $2.1 million from $7.1 million, while institutional-government permits were down 86 per cent to $0.5 million from $3.4 million. No commercial permits were issued in September. The seasonally adjusted value of residential permits increased 23 per cent to $6.3 million in September 2014 from August’s $5.1 million.
VRCA’s outlook for Abbotsford in 2014 is positive with an upside bias, with double-digit gains in total building permits likely over 2013.
Regional Building Permit Highlights
- Seasonally adjusted total building permit values in the Abbotsford CMA fell 46 per cent to
$8.9 million in September 2014 compared to $16.4 million in August 2014.
- Non-residential permits dropped 77 per cent to $2.6 million from $11.3 million.
- Residential building permits increased 23 per cent to $6.3 million from $5.1 million.
- Total building permit values in Abbotsford were 17 per cent higher to $152.6 million in the first nine months of 2014 compared to $130.3 million in the same period last year.
- Non-residential permits were 44 per cent higher at $71.5 million.
- Residential permits were up four per cent to $71.4 million.
- Total building permit values rose five per cent in the Lower Mainland-Southwest region to $573.9 million in September 2014 compared to $546.4 million in August 2014.
With close to 700 members, VRCA is British Columbia’s largest and most inclusive regional construction association, representing union and non-union, general and trade contracting companies, manufacturers, suppliers and other professionals throughout the Lower Mainland from Hope to Whistler.