LATE SUMMER BUILDING PERMIT BOOM

Developers give Calgary 'a vote of confidence'
By Mario Toneguzzi,
Calgary Herald October 7, 2011

A burst of late summer construction put Calgary among the country's biggest gainers in building permit values last month.

Statistics Canada reported Thursday that local building permit values soared to $461 million in August, an increase of 23.6 per cent from July and 77 per cent from a year earlier.

Susan Thompson, business development manager for real estate for Calgary Economic Development, said the numbers indicate "developers are giving Calgary a vote of confidence. It takes time to build a building, but they're thinking there's going to be the demand there.

"By the time they're complete, we're going to need these buildings," said Thompson.

Half of the 14 permit applications valued at more than $20 million this year have been for multi-family housing projects, said Thompson.

Building permits are a good indicator of the city's economy going forward, she said.

"It speaks to intention," she said. "They wouldn't build them if they didn't think there was going to be demand. They obviously feel the economy is going to keep growing and the demand's going to be there."

Building permit values through August in Calgary now top $3.4 billion, an increase of 36.8 per cent from the same period a year ago. The total is almost equally split between the residential and non-residential sectors. The residential sector has increased by 9.5 per cent and the non-residential sector is up 84.1 per cent.

Ben Brunnen, director of policy and government affairs and chief economist for the Calgary Chamber of Commerce, said the numbers reflect renewed confidence in the Calgary economy.

"When we see building permits in Calgary increase that's for the construction sector and that tends to be the sector that falls off first in a recession and comes on last in a recovery," he said. "So the fact that we're seeing these increases in Calgary particularly relative to the other cities suggest that there's a vote of confidence for Calgary's economy moving forward."

PERMIT TO SOAR

Calgary building permit values soar in July
Up 43 per cent from a year ago
By Mario Toneguzzi
August 8, 2011

CALGARY — The estimated construction value of building permit applications in Calgary soared in July compared with a year ago.

The City of Calgary says the value ballooned to $328 million for the month, up 43 per cent from July 2010’s $229 million.

It is also up three per cent compared with the five-year average of $318 million and an increase of 15 per cent compared with the 10-year average of $284 million.

In July, residential values were up 41 per cent from a year ago to $189 million while non-residential values were up 47 per cent to $139 million.

“The residential increase for July building permits goes across all sectors – single family, garage, two family, apartment and townhouse,” said David Watson, general manager of planning, development and assessment, said in a news release. “In the non-residential categories, values were highest in the commercial sector whereas there was a marked decrease in the government and institutional sectors for new construction.”

Year-to-date ending July 31, total values across all categories are up 44 per cent over the previous year to $2.7 billion compared with $1.8 billion in 2010, said the city, with the residential category up eight per cent to $1.2 billion and the non-residential category up 96 per cent to $1.5 billion.

The non-residential values are significantly higher than 2010 due to a major airport terminal improvement project valued at $600 million from January.

Major projects for July included three new apartment projects valued over $10 million (St. John’s Tenth Street at $26 million; Mikkelsen House Phase 1 at $14 million; Panorama West at $11 million), a $18 million senior citizen home improvement (Bow view Manor) and two new warehouse/storage facilities (HCP Phase II Building ‘A’ at $18 million; Canada Post at $10 million).

PERMITS BOUNCE BACK

Alberta building permits rebound to pre-boom levels
Edmonton Journal; with files from Postmedia News
August 6, 2010

Calgary posted a monthly increase in the value of building permits in June, but it was still lower from last year's figure, Statistics Canada said Thursday.

Building permit values, at $375 million, were up 19.2 per cent from May, but that's down 12.5 per cent from the same time last year.

For Alberta, total building permits rose to $1.19 billion in June, up 29.9 per cent year-over-year, led by a strong recovery in residential permits.

From May to June, Alberta permit values went up 17.7 per cent, but it was a 67.9 per cent increase in nonresidential construction intentions that pulled the figure up. Residential permits actually fell 8.5 per cent from May.

"The increase in Alberta was attributable to all components in the non-residential sector," the federal agency said.

Southern Alberta, where Lethbridge and Medicine Hat spiked in June, reaching $54.2 million for the month, has rebounded to pre-boom levels, said ATB Financial senior economist Todd Hirsch.

"After peaking during the summer of 2008, there was a strong pullback in activity in the Lethbridge and Medicine Hat region," Hirsch said.

"In recent months, however, it seems that building permits have stabilized at a level more or less consistent with that seen prior to the boom years. This trend may yet soften a bit with a moderation in the real estate market later this year, but the overall industry appears to be in good shape."

Nationally, the value of building permits jumped more than expected in June, as an increase in non-residential activity offset a decline in residential permits.

Values rose 6.5 per cent to $6.6 billion during the month. Most economists had expected a gain of 1.8 per cent.

The June figure was up 24.9 per cent from the same month last year, the federal agency said.

In the non-residential sector, permit values rose 23.5 per cent to $3 billion. "This increase was largely attributable to higher commercial and institutional construction intentions in Ontario and higher commercial construction intentions in Alberta," the agency said.

Residential permits, meanwhile, fell 4.5 per cent to $3.6 billion in June, due to a decline in single-family intentions. It was the third straight monthly decline for the sector.

In total, permit values rose in six provinces. The biggest gains were in Alberta, Newfoundland and Labrador and British Columbia. The largest drop was in Saskatchewan.

Photo By: Daniel Brennwald