Sun

Construction across B.C. eased off in January from the gains seen up to the end of the year, with contractors taking out almost $685 million worth of building permits that month, a 23-per-cent decrease from December.

The drop was mostly in the non-residential sector, where contractors took out only $156 million in permits to build new buildings, down nearly 29 per cent from the previous month.

Residential construction, while down almost 21 per cent from December to $528.4 million, still reflects the rebound in residential building in B.C.

In total, the $685 million in permits, which is a measure of construction intentions, is more than double the amount taken out in January 2009.

And the $528.4 million in residential permits is almost 207-per-cent higher than the amount taken out in January a year ago.

“Residential permits make up the bulk of the gains, but public-sector activity is also rising,” Keith Sashaw, president of the Vancouver Regional Construction Association said in a statement.

Sashaw added that while January’s permit numbers were down from December, “we’re encouraged by the year-over-year numbers that highlight the gains made last year, as well as the lead role of the construction sector during the economic recovery.”

Across Canada, the value of building permits issued in January slipped 4.9 per cent to $5.7 billion as nonresidential construction permits fell 21 per cent to $1.7 billion, Statistics Canada reported Thursday.

Economists had called for a 0.8 per cent month-over-month gain in building permits.

However, the value of residential building permits issued rose 4.1 per cent to $4 billion, almost twice the value registered in January 2009, and driven largely by a 7.2-per-cent rise in intentions for single-family homes, the federal agency said.

January’s figures were still 32.7-percent higher than in January 2009, Statistics Canada said.

“While building permits have declined now for three consecutive months — incorporating this morning’s revisions — almost all of the weakness has been on the non-residential side, with residential permits up in two of the past three months,” said Scotia Capital economist Karen Cordes.

“And, when you strip out prices and look solely at the volumes side of the picture, the story is even better on the residential front, with gains in each of the past six months. This bodes well for next week’s housing starts report and suggests we will see further gains on the supply front over the next few months.”

December’s report was revised down from an advance of 2.4 per cent to a decline of 2.7 per cent.

The total value of building permits fell in five provinces, led by Alberta and British Columbia — with Alberta falling 28.5 per cent to $876.5 million and B.C. falling 22.5 per cent to $684.6 million.

In Alberta, the decline was attributed to lower intentions for commercial buildings and multi-family dwellings, while in B.C. the decreases came from both the residential and non-residential sectors.

Ontario posted the largest dollar-value gain, up 6.9 per cent to $2.31 billion, as a result of strength in both the residential and non-residential sectors, while in Quebec, strength in the residential sector drove a 10.7-per-cent advance to $1.25 billion.

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Drop to $5.7 billion largely caused by slumping non-residential sector

Province

Permits for new home construction were up by just over four per cent to $4 billion. Photograph by: Ian Lindsay, PNG, Financial Post

The value of building permits issued in January slipped 4.9 per cent, to $5.7 billion, as nonresidential construction permits fell 21 per cent, to $1.7 billion, Statistics Canada reported Thursday.

Economists had called for an 0.8-per-cent month-over-month gain in building permits, an indication of future construction activity. However, the value of residential building permits issued rose 4.1 per cent to $4 billion, almost twice the value registered in January 2009, and driven largely by a 7.2 per cent in intentions for single-family homes, the federal agency said.

January’s figures were still 32.7 per cent higher than in January 2009, Statistics Canada said.

“While building permits have declined now for three consecutive months — incorporating this morning’s revisions — almost all of the weakness has been on the non-residential side, with residential permits up in two of the past three months,” said Scotia Capital economist Karen Cordes.

“And, when you strip out prices and look solely at the volumes side of the picture, the story is even better on the residential front, with gains in each of the past six months. This bodes well for next week’s housing starts report and suggests we will see further gains on the supply front over the next few months.”

December’s report was revised down from an advance of 2.4 per cent to a decline of 2.7 per cent.

The total value of building permits fell in five provinces, led by Alberta and British Columbia — with Alberta falling 28.5 per cent to $876.5 million and B.C. falling 22.5 per cent to $684.6 million.

In Alberta, the decline was attributed to lower intentions for commercial buildings and multi-family dwellings, while in B.C. the decreases came from both the residential and non-residential sectors.

Ontario posted the largest dollar-value gain, up 6.9 per cent to $2.31 billion, as a result of strength in both the residential and non-residential sectors, while in Quebec, strength in the residential sector drove a 10.7-per-cent advance to $1.25 billion.

The total value of permits fell in 18 of 34 census metropolitan areas, comprising cities and their surrounding suburban areas.

The largest declines were in Calgary (-48.5 per cent), Vancouver (-37.2 per cent) and Greater Sudbury, Ont. (-95.3 per cent). The largest gains were in Toronto (+18.3 per cent) and Montreal (+16 per cent).

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Councillor offers up suggestion to help advance plans for new architectural masterpiece

Kent Spencer
Province

Granting permission for an extra-tall office tower would be one way of creating funds for a prestigious new Vancouver Art Gallery.

Vancouver Coun. Heather Deal said Thursday that allowing the extra space — known as “bonus density” — would provide development-generated funds for the gallery’s anticipated move to Beatty and Georgia.

“It’s very exciting. This is the beginning of the conversation,” said Deal, from a conference in Moncton, N.B.

“The gallery might need to share the site with an office tower. Vancouver needs office towers downtown. Other people are interested.

“We need to come up with a proposal which serves the city, the gallery and fits into the overall downtown plan,” she said.

The gallery was recently slated to move to a site on False Creek near B.C. Place, but officials said the seaside venue was prone to flooding.

It was also privately owned, whereas its new preferred location at the old downtown bus-depot site is owned by the City of Vancouver.

The vacant block, which has recently been home to Olympic activities, is near a cultural hub at the Queen Elizabeth Theatre.

But Deal warned that a move is far from certain.

The gallery needs to raise several hundred million dollars for a 30,000-square-metre, purpose-built facility to house its art treasures.

It wants an architectural masterpiece so stunning it will draw visitors from around the world, its officials have said.

The gallery has promised that large sums can be raised from the private sector, and it already has $50 million from the province.

It says the move is necessary because it current headquarters in the old courthouse building at Howe and Georgia are too small to display its valuable collection.

Deal said precious artworks stored underground are subjected to water damage from the overhead courtyard fountains.

Coun. Tim Stevenson, meanwhile, said the ultimate plan would not necessarily include a tower.

“The art gallery will push really hard for a stand-alone site,” he said.

The present gallery is a heritage landmark and most recently the scene of Olympic festivities at Robson Square.

If the gallery move comes about in a few years time, Stevenson said, the courthouse would likely retain its public function.

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37-per-cent increase expected

Brian Morton
Sun

Housing starts in B.C. will increase this year at the highest rate in Canada, according to the Canada Mortgage and Housing Corporation’s Housing Market Outlook Report, released Tuesday.

“The outlook for housing starts in B.C. is similar to the national trend in terms of the forecast increase of housing construction,” Carol Frketich, CMHC’s regional economist for B.C., said in an interview.

“The difference is, we’ll see a stronger rebound in housing starts. For B.C., we’re forecasting a 37-per-cent increase. Nationally, it’s about a 15-percent increase.”

According to the report, the forecast for B.C. is for 22,050 starts this year, with a range between 20,200 and 24,500, and 26,200 starts in 2011.

That’s up from 16,077 starts in 2009, but still below the 10-year average.

“B. C. saw a sharper downturn and we’ll see a rebound of similar magnitude,” Frketich said.

The demand for new home construction will benefit from an improved economy and labour market and lower interest rates, she said.

Nationally, rising housing starts are expected to put a lid on home prices this year after their 19-per-cent surge in 2009, CMHC said.

Canada-wide, between 152,000 and 189,300 housing starts are expected in 2010, up from 149,081 units last year.

Describing the current state of affairs as a sellers’ market, CMHC said the relative lack of new listings for existing homes has pushed some of the demand into the new home market, which helps explain the forecast for higher housing starts activity in 2010.

But it added that it expects prices to remain stable in 2010 around the Multiple Listing Service average reached in January this year of $328,537, as the new housing stock brings balance back to the market.

As well, tighter requirements for mortgage lending recently imposed by Ottawa as fears of a housing bubble mounted “will help moderate housing activity as some potential buyers will have to save a larger down payment or consider a less expensive home,” CMHC chief economist Bob Dugan said.

CMHC said the strong pace of existing sales over the last three quarters of 2009, a carry-over from the two previous quarters, will not be sustained as pent-up demand is exhausted and financing costs rise later in 2010.

It forecasts existing home sales will be in a range of 455,350 to 509,900 units in 2010.

In 2011, housing starts will total 156,400 to 205,600 units and prices will rise again modestly, with prices up modestly, the report said.

[email protected] with a file from the Financial Post

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John Morrissy
Province

Housing starts will rise in 2010, putting a lid on home prices this year following their 19-percent surge in 2009, the Canada Mortgage and Housing Corp. said Tuesday.

Between 152,000 to 189,300 housing starts are expected in 2010, up from 149,081 units last year, the national housing agency said.

Describing the current state of affairs as a sellers’ market, CMHC said the relative lack of new listings for existing homes has pushed some of the demand into the new home market, “which helps explain the forecast for higher housing starts activity in 2010,” CMHC said.

But it added that it expects prices to remain stable in 2010 around the Multiple Listing Service average reached in January this year of $328,537, as the new housing stock brings balance back to the market.

As well, tighter requirements for mortgage lending recently imposed by Ottawa as fears of a housing bubble mounted “will help moderate housing activity as some potential buyers will have to save a larger down payment or consider a less expensive home,” said CMHC chief economist Bob Dugan.

CMHC said the strong pace of existing sales over the last three quarters of 2009, a carry-over from the two previous quarters, will not be sustained as pent-up demand is exhausted and financing costs rise later in 2010.

It forecasts existing home sales will be in a range of 455,350 to 509,900 units in 2010.

In 2011, housing starts will total 156,400 to 205,600 units and prices will rise again modestly, it said.

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