Monday, December 11, 2017

Q3 Vancouver Island building permit values reach record high

November 29, 2017 (Victoria, BC) – Building permits on Vancouver Island reached the highest dollar value ever recorded in the July to September 2017 period, contributing to the Island’s economic growth and employment.

“The building boom continues across the Island in both residential and non-residential sectors,” said Rory Kulmala, VICA CEO. “We expect this upswing to continue right through 2018.”

With building permits increasing five per cent to $647.5 million, the Island’s construction industry was kept busy in the third quarter of 2017. Residential building permits jumped 20 per cent to $488 million, while non-residential permits increased 15 per cent to $648 million.

Major projects contributing to the building permits issued during this period include renovations and an addition to Elements Casino Victoria in View Royal ($13M), sewage treatment upgrades in Parksville (8.84M), and Camosun’s Centre for Health & Wellness in Saanich ($32M).

“We want our members working and the industry thriving, so our goal is to see this momentum continue,” said Kulmala. “Our forecast for 2018 is more of the same thanks to population growth, an expanding economy, and continued low interest rates.”

Construction employment rose by 2.9 per cent across Vancouver Island — 34,500 to 35,500 — with most of the gain seen in areas outside of metropolitan Victoria.

HIGHLIGHTS

  • Vancouver Island: year-to-date, building permits rose 18 per cent to $1.8 billion, with residential permits spiking 23 per cent to $1.3 billion and non-residential permits bumping up five per cent to $411 million.
  • Capital RD: year-to-date total permits increased 28 per cent to $1.064 billion led by a 26 per cent spike in institutional-government permits.
  • Western Communities: year-to-date total permits were led by a 144 per cent increase in commercial permits which offset lower activity in industrial and government permits.
  • Cowichan Valley RD: year-to-date total permits increased by 20 per cent to $124.4 million.
  • Alberni Clayoquot: year-to-date total permits were 18 per cent higher. Residential permits rose 13 per cent while non-residential permits jumped 46 per cent.
  • Mount Waddington RD (North Island): year-to-date total permits were nearly triple last year’s level on large increases in non-residential permits, led by institutional-government. Residential permits were 56 per cent higher at $2.3 million.

Full regional data and graphs can be found here.