The Victoria building boom has no signs of letting up. As we have mentioned in many of our previous blogs, Victoria Real Estate is in high demand. A recent article in the Times Colonist by Carla Wilson reads:
Building boom flirting with $1-billion mark
You don’t have to ride a construction crane in Greater Victoria to see the building boom has reached dizzying heights — and is closing in on a record $1 billion in spending this year.
Building-permit values for the first 10 months of the year have blasted through the previous record for an entire year of spending, set in busy 2006.
The value of building permits from January through October this year reached $818.4 million, up 18.4 per cent from the same months last year, Statistics Canada said yesterday. The total value of building permits in Greater Victoria last year was $776.4 million, which set the earlier record, StatsCan’s Etienne Saint-Pierre said from Ottawa.
The huge numbers are no surprise to Ian Ramsay at the Victoria office of Steels Industrial Products, suppliers of insulation, masonry, roofing materials and general contracting products.
“Last year we surpassed all previous records of our company’s performance levels … and so far this year we are exceeding 2006 levels,” said Ramsay, a board member of the Southern Vancouver Island Construction Association.
In today’s busy construction climate, that means sometimes wearing more than one hat on the job, he said. Some Saturdays he opens the company warehouse to builders because “a lot of our customers [are] having to work weekends.”
When the weather is good, customers are working long hours, and when customers are busy, so is Steels, Ramsay said.
Residential construction in Greater Victoria is at a record high this year, at $592.7 million from January through October, Saint-Pierre said. Last year saw $550.8 million in residential construction.
Although the permit value in Greater Victoria has risen by 40 per cent to $47.8 million, the overall numbers show the strength of the local construction market this year. New housing projects, whether multi- or single-family, have been developed non-stop throughout this region.
The number of tall cranes working on condominium projects in central Victoria illustrates the strength of the housing market, which is attracting locals and out-of-town buyers.
Province-wide, building-permit value moved up 12 per cent to $10.5 billion for the first 10 months of the year, compared to the same time last year.
Nationally, municipalities issued $62.1 billion worth of permits from January to October, up 14.2 per cent from the same period in 2006. That was only $4.2 billion short of the record for the entire year set in 2006, Statistics Canada said.
The value of permits issued by Canadian municipalities from September to October increased more than anticipated at 6.8 per cent to $6.7 billion, marking the sixth month in a row that values exceeded $6 billion. Forecasts had estimated a 0.8 per cent increase.
Construction strength came from new office-building projects in Calgary and multi-family housing projects.
The value of permits for multi-family dwellings gained 21.8 per cent in October to $1.6 billion, the second-highest level since December 2005. The value of single-family permits fell 10.6 per cent to $2.4 billion.
The value of non-residential permits surged in October, thanks to the strong demand for commercial space in the Calgary census metropolitan area, which gained by 42.1 per cent.
A large part of the overall gain in the non-residential sector came from commercial-construction intentions. The value of commercial permits totalled $1.6 billion, up 23.1 per cent from September.
Intentions in the residential sector remained stable at $4 billion, while in the non-residential sector, intentions rose 19.3 per cent to $2.6 billion
If you have any comments or thoughts on the above, just drop us a note below. If you have questions about Victoria Real Estate in general, you can contact us anytime.
Anders Treiberg, Associate Broker, REALTOR®
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