本文发表在 rolia.net 枫下论坛Building hits an all-time high
Gains seen as vote of confidence
Toronto reflects national trend
TONY WONG
BUSINESS REPORTER
Canadian municipalities issued an all-time record of $24.9 billion worth of building permits in the first six months of this year, a signal that bodes well for the construction industry, according to figures released by Statistics Canada.
The value of building permits from January to June rose 8 per cent compared with the same period in 2002, the federal agency reported yesterday. The value of permits in June, at $4.3 billion, was up 4.3 per cent over May.
"These numbers suggest construction will remain strong and will be that way for some time," said housing analyst Frank Clayton of Clayton Research.
Toronto led the way among metropolitan areas, recording the biggest gain in the value of permits in June, with a rise in the value of single-family housing helping lift the total to nearly $1 billion. For the first six months of the year, building permits in Toronto are up 9.7 per cent compared with 2002 figures.
"This is the best first six months of any year that Toronto has seen," Statistics Canada construction sector analyst Erik Dorff said in an interview. "Consumers are still expressing their faith in the economy through the construction sector."
Residential permits in the first six months of the year for the Toronto area were second only to last year, while non-residential permits in the industrial, commercial and institutional sectors were topped only by the highs of 1989, according to Statistics Canada.
"These are very strong numbers and it looks like we're going to see muddy boots on construction sites for some time to come," said Dorff.
Toronto was followed by Calgary, where growth of permits in the medical sector helped bring total building intentions to $346 million. The biggest monthly declines occurred in Kingston and St. Catharines-Niagara, largely due to declines in the value of commercial permits.
Building permits are considered a leading indicator by economists, providing an early signal of building activity and a sense of how confident developers are in the real estate market.
"The country's residential sector continues to perform at a torrid pace, setting records for both single-family and multi-family permits for the first half of the year," said Statistics Canada.
"The residential sector's vibrancy appears to underscore consumer confidence in investment in housing. Modest mortgage rates and a generally favourable job environment have encouraged people to abandon rental accommodations in favour of home ownership."
Two of the tightest housing markets, Toronto and Ottawa, have seen a modest increase in vacancy rates for rental accommodations, said Statistics Canada.
So far in 2003, municipalities have authorized the largest number of row housing units since 1994. Row housing tends to be more within the reach of first-time home buyers.
On the non-residential side, institutional projects had substantial gains in June, with Alberta experiencing the greatest increase as a result of hospital projects.
"The government is pumping a lot of money into health care and that's reflected in the numbers," said Clayton.
"With the kind of money they're injecting this means the construction market will remain buoyant, but that doesn't mean it'll stay that way forever," he added.
Clayton is forecasting the non-residential sector will remain strong for the next year, but housing permits will start to taper off over the next few months.
A large backlog in housing starts in Toronto, especially among condominiums, is still keeping construction higher than sales, he said.
In terms of the resale market, June sales hit their highest level since February, 2002, according to the Canadian Real Estate Association. Average prices rose about 9.7 per cent year over year to $226,162.
The average price in the Toronto area in June was $292,245. Some analysts are predicting this year will be a high-water mark for the resale market, topping last year.
However, prices are expected to level off because most of the price increases have already occurred in the first six months of the year.更多精彩文章及讨论，请光临枫下论坛 rolia.net
Gains seen as vote of confidence
Toronto reflects national trend
TONY WONG
BUSINESS REPORTER
Canadian municipalities issued an all-time record of $24.9 billion worth of building permits in the first six months of this year, a signal that bodes well for the construction industry, according to figures released by Statistics Canada.
The value of building permits from January to June rose 8 per cent compared with the same period in 2002, the federal agency reported yesterday. The value of permits in June, at $4.3 billion, was up 4.3 per cent over May.
"These numbers suggest construction will remain strong and will be that way for some time," said housing analyst Frank Clayton of Clayton Research.
Toronto led the way among metropolitan areas, recording the biggest gain in the value of permits in June, with a rise in the value of single-family housing helping lift the total to nearly $1 billion. For the first six months of the year, building permits in Toronto are up 9.7 per cent compared with 2002 figures.
"This is the best first six months of any year that Toronto has seen," Statistics Canada construction sector analyst Erik Dorff said in an interview. "Consumers are still expressing their faith in the economy through the construction sector."
Residential permits in the first six months of the year for the Toronto area were second only to last year, while non-residential permits in the industrial, commercial and institutional sectors were topped only by the highs of 1989, according to Statistics Canada.
"These are very strong numbers and it looks like we're going to see muddy boots on construction sites for some time to come," said Dorff.
Toronto was followed by Calgary, where growth of permits in the medical sector helped bring total building intentions to $346 million. The biggest monthly declines occurred in Kingston and St. Catharines-Niagara, largely due to declines in the value of commercial permits.
Building permits are considered a leading indicator by economists, providing an early signal of building activity and a sense of how confident developers are in the real estate market.
"The country's residential sector continues to perform at a torrid pace, setting records for both single-family and multi-family permits for the first half of the year," said Statistics Canada.
"The residential sector's vibrancy appears to underscore consumer confidence in investment in housing. Modest mortgage rates and a generally favourable job environment have encouraged people to abandon rental accommodations in favour of home ownership."
Two of the tightest housing markets, Toronto and Ottawa, have seen a modest increase in vacancy rates for rental accommodations, said Statistics Canada.
So far in 2003, municipalities have authorized the largest number of row housing units since 1994. Row housing tends to be more within the reach of first-time home buyers.
On the non-residential side, institutional projects had substantial gains in June, with Alberta experiencing the greatest increase as a result of hospital projects.
"The government is pumping a lot of money into health care and that's reflected in the numbers," said Clayton.
"With the kind of money they're injecting this means the construction market will remain buoyant, but that doesn't mean it'll stay that way forever," he added.
Clayton is forecasting the non-residential sector will remain strong for the next year, but housing permits will start to taper off over the next few months.
A large backlog in housing starts in Toronto, especially among condominiums, is still keeping construction higher than sales, he said.
In terms of the resale market, June sales hit their highest level since February, 2002, according to the Canadian Real Estate Association. Average prices rose about 9.7 per cent year over year to $226,162.
The average price in the Toronto area in June was $292,245. Some analysts are predicting this year will be a high-water mark for the resale market, topping last year.
However, prices are expected to level off because most of the price increases have already occurred in the first six months of the year.更多精彩文章及讨论，请光临枫下论坛 rolia.net