The value of building permits in all of Western Canada’s major cities – except for Calgary – fell in the latest available Statistics Canada figures, due to a Canada-wide drop in non-residential construction applications.
All commercial real estate sectors across Canada recorded a decline in permit values from August to September, with the exception of multi-family housing. According to Statistics Canada, commercial building permits fell 20.8 per cent in September after a summer of consecutive increases from June to August. Multi-family dwellings, which Statistics Canada counts as part of their residential sector, saw a 3.7 per cent increase in permit values.
The value of building permits by census metropolitan area expressed in the graph above is demonstrative of these changes, with Calgary’s gain due to an overall provincial increase of 10.4 per cent. Alberta had more construction applications for rental apartments and institutional structures in September, offsetting declines in construction intent in every other sector.
September statistics for Vancouver show almost exactly the opposite situation to Calgary. The value of building permits in the city dropped more than 20 per cent. Unlike Alberta, there were less construction applications for multi-family dwellings and commercial buildings in September.
Permit values in Saskatoon dropped slightly, but Saskatchewan recorded a modest increase in residential development against a non-residential drop of 21.1 per cent. Winnipeg experienced a steeper drop in values, due to a provincial decrease in both residential and non-residential values.
Overall, Statistics Canada reports that the total building permit values for September 2016 across Western Canada’s major cities have decreased since September 2015. Edmonton permit values declined 42.8 per cent since September of last year, the largest decrease in any major Western Canadian city. Meanwhile, Winnipeg held the only yearly increase, with a modest 2.5 per cent over September 2015.
