Construction in the Lower Mainland region continued a downward trend, with building permit values dropping by 11% in March compared with February, according to an analysis of the latest Statistics Canada data by the Vancouver Regional Construction Association.
Abbotsford bucked a general downwards trend. Building permit values there rose 69% in March, compared with February.
“Abbotsford saw a rebound in permit values in March, mostly on the strength of non-residential permit values, with the largest percentage gain in industrial permits and the largest dollar gain in commercial permits over February,” said Jan Robinson, interim VRCA president.
Generally, however, throughout the Lower Mainland, building permit values have dropped by 4% in the first three months of this year, compared with 2012’s first quarter.
“Building permits have seen a decline over the past six to nine months following the mid-2012 surge,” Robinson said. “Fewer commercial and government permits are driving this trend. Industrial permits have held, but their size cannot offset larger declines in other sectors.”
The total value of building permits in March was $447.8 million, down from $504.1 million in February.
Some key highlights, comparing March values with February, include:
- non-residential permits fell 33% to $106.8 million from $158.7 million;
- commercial permits dropped 29% to $78.5 million from $110.9 million;
- institutional-government permits fell 63% to $11.5 million from $31.1 million;
- industrial permits dropped 5% to $16.8 million from $17.6 million;
- residential permit values dropped 1% to $341 million from $344.4 million.
“The outlook for regional commercial and industrial investment is modestly favourable since the regional economy and population base will continue to grow,” Robinson said.
“However, a significant upturn in commercial and industrial permits beyond 2013 will need stronger economic and market conditions.”
