Total building permit values in the Lower Mainland-Southwest region were down 16% in June 2012 from May 2012, according to Vancouver Regional Construction Association's (VRCA) analysis of yesterday's Statistics Canada Building Permit Report.
Despite the month-over-month decline, June building permits were still 21% higher than June 2011 and posted their second best month since November 2010.
Keith Sashaw, president of the VRCA, said, "Year-to-date permits are still well above where they were in June 2011. This signifies the healthy state of the construction industry and its significant contribution to the region's economic growth.
"This month's declines can mostly be attributed to a large drop in public-sector permits. This is not surprising following the record high we saw in public permits last month."
The VRCA's 2012 outlook remains positive, notwithstanding external risks such as the European debt crisis.
Total 2012 permits are forecast to post a 10% to 15% gain over 2011. The outlook for commercial and industrial permits is generally positive. However, a softening local housing market and a tightening of federal mortgage insurance rules will likely lead to fewer residential permits in 2012 compared with 2011, according to the association.
Total permit values in June 2012 dropped to $714.2 million compared with $852.2 million in May 2012. Non-residential permits dropped 43% to $183.4 million from $320.1 million in May. Residential permit values were little changed at $530.8 million in June from $532.2 million in May.
Year-to-date total building permit values were up in all permit categories in the Lower Mainland-Southwest region in June except for commercial permits, which were 2% lower than last year. Total values were up 21% to $3.695 billion from $3.052 billion in the first six months of 2011.
Total non-residential permits were up 27% compared with the first six months of 2011, to $1.288 billion from $1.014 billion. Residential permits were 18% higher at $2.407 billion compared with $2.038 billion during the same period in 2011.
