Value of Canadian building permits up 12.9 percent in November

Monday, 04 January 2021 21:15:07 (GMT+3)   |   San Diego
       

According to Statistics Canada, the total value of building permits rose 12.9 percent to $9.4 billion in November, the third highest value on record—with the highest value having been reached in April 2019. Much of this growth was led by large permits for multi-family dwellings in British Columbia and Ontario, and an office building in the city of Toronto.

The value of residential permits rose to new heights in November, increasing 10.0 percent to $6.4 billion and breaking the previous record set in September 2020. Every province posted gains in this sector, except for Nova Scotia and Prince Edward Island, which reported slight declines.

Multi-family dwellings rose 14.8 percent to $3.5 billion. The majority of the growth came from British Columbia (+41.3 percent), specifically municipalities in Vancouver Island and in the census metropolitan area of Vancouver. A $376 million permit issued for the Sugar Wharf Condominiums in the city of Toronto contributed to the record high reported in Ontario ($1.6 billion).

Single-family permits increased 4.4 percent to $2.8 billion in November, continuing the strong upward trend observed over the past six months, with values well above pre-COVID levels since August 2020. Quebec (+12.7 percent) recorded the largest gain, while Nova Scotia (-8.5 percent) was the only province to post a decline.

Non-residential permits rose by almost one-fifth (+19.5 percent) to $3.0 billion in November, mainly due to a $507 million building permit for the new Cadillac Fairview office building in downtown Toronto. Excluding this permit, the non-residential sector would have shown a slight decline nationally.

The value of commercial permits rose by almost one-third (+31.2 percent) to $1.6 billion, based on the strength of the Cadillac Fairview office building. Consequently, Ontario (+94.0 percent) reached its second highest level on record.

The total value of institutional permits rose by nearly one-quarter (+23.2 percent) to $900 million in November, with gains in seven provinces. Newfoundland and Labrador reported the largest increase, mainly due to a $57 million permit for continued repairs to Western Health's long-term palliative care home in Corner Brook. British Columbia (+44.2 percent) had the second highest gain as a result of a permit issued for a new secondary school in the city of Burnaby, as well as two permits issued for new nursing homes in Vancouver and Victoria.

Industrial permits fell for the fifth time in six months, declining 9.3 percent to $537 million in November. Five provinces posted a decrease in this component, with Ontario (-11.0 percent) and British Columbia (-44.1 percent) registering the most significant drops.


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