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64-001-XIE
Municipalities issued $3.8 billion in building permits
in January, the highest monthly figure on record and an increase of 21.5%
from December. Vigorous construction intentions in both the residential
and non-residential sectors fuelled the gain.
Powered by strong demand for both single- and multi-family
dwellings, builders took out $2.0 billion worth of housing permits, up
a substantial 22.0% from December. This was the best monthly performance
since February 1990.
Intentions in the non-residential sector followed a similar
path, rising 20.9% from December to $1.8 billion, the highest level in
11 years. This was almost exclusively the result of a substantial increase
in permits for commercial projects.
January 2001 saw a stronger start than did January 2000.
The value of building permits was 17.9% higher than the construction intentions
for the same month a year ago.
At the regional level, the metropolitan areas of Montréal
and Toronto pulled far ahead of other regions. In both areas, every component
in the residential and non-residential sectors recorded gains from January
2000.
Increases in both single- and multi- family components
Building permits for single-family dwellings rose 16.2%
to $1.4 billion in January, following a 6.4% decline in December. Construction
intentions for multi-family dwellings jumped 37.5% to $608 million.
These results are consistent with key indicators showing
a strong housing market. In January, housing starts were up 20.1%, sales
of existing homes surged and prices for new housing increased at a strong
rate. As well, employment levels remained high.
The outlook for the housing sector is positive for 2001.
The latest release of Statistics Canada's Survey on Public and Private
Investment showed investment in housing is expected to increase for a
sixth straight year in 2001.
At the provincial level, by far the largest January increase
(in dollar terms) in the housing sector occurred in Ontario (+30.0% to
$988 million). The strong construction intentions for multi-family dwellings
in the Toronto area drove this increase. Quebec also posted a notable
gain (+32.2% to $379 million). In both provinces, these levels were the
highest in nine years.
Nova Scotia was the only province to post a decline in
residential building permits (-1.9% to $34 million), the province's third
monthly decrease in a row for housing intentions.
The total value of residential permits was up 13.2% from
January 2000, mainly because of intentions for multi-family dwellings.
The provinces that posted the best start to the new year (in dollar terms)
were Ontario (+15.0%) and Quebec (+37.6%).
Best start ever for non-residential sector
In January, $1.8 billion in non-residential permits were
issued, 23.5% more than in January 2000, and the best January results
on record. All three components showed year-over-year increases, but the
largest was posted by the industrial component (+76.1%). Among the provinces,
Ontario (+65.4%) and Quebec (+112.9%) showed the best start.
Despite a fourth consecutive quarterly decline in the
Conference Board of Canada's Index of Business Confidence, the outlook
for the non-residential sector remains positive. Corporate operating profits
reached a record high in 2000, vacancy rates for office and commercial
buildings shrank in many centres and high industrial capacity utilization
rates led the non-residential sector to a strong start in 2001.
Non-residential construction activity (excluding engineering)
is also expected to grow in 2001, according to the Survey on Private and
Public Investment.
On a monthly basis, increases in commercial construction
intentions fuelled January's gain in non-residential permits. The value
of commercial permits climbed 46.7% from December to $1.0 billion; most
of the gain was for offices and hotels. The largest increases in commercial
permits were in Quebec (+154.0% to $262 million) and Ontario (+48.9% to
$463 million).
The industrial component increased 2.4% to $416 million,
largely the result of projects related to utilities. Quebec posted the
most significant increase in this component; industrial projects there
almost quintupled (+392.9% to $161 million) from December.
However, intentions in the institutional component declined
6.4% to $362 million; education showed the greatest loss. Ontario had
the largest decrease in the institutional component (-17.1% to $209 million).
Among the provinces, the outstanding results in the Montréal
area led Quebec to the largest increase in the non-residential sector
(+148.9% to $486 million). Following a strong month in December, Ontario
recorded the most significant decrease (-1.7% to $854 million).
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