While there’s still four months left in 2016, the value of construction activity around the city appears to be headed for a steep drop compared to the record year that was 2015.
City building permit values are down by about a third through the first eight months of the year, compared to same time in 2015.
So far this year, the city has handed out 1,258 permits totalling $395 million in value. Nearly a quarter of the overall number ($86 million) came in the month of August alone. But it’s down from the $619 million worth of permits issued by the end of August 2015.The number of permits issued at that time was 1,230.
In all, $146 million, or 37 per cent, of the permits so far in 2016 went toward single-family construction, with another $108 million going toward multi-family construction.
Mayor Derek Corrigan doesn’t see the decline in permit values as a sign that construction activity is slowing in Burnaby. Instead, he suggested the numbers tend to ebb and flow and could easily increase significantly.
The mayor also noted the city has a backlog of projects, and any slowdown in development would be welcomed to allow staff to work on other projects.
“From the planning department’s point of view, any time you can reduce the workload, it’s great for us,” he told the NOW, adding he sees no signs development is slowing down.
Corrigan said the city is barely keeping up with the commitments to the regional growth plan, adding there seems to be an “endless appetite” for new housing units.
He also suggested the 15 per cent foreign tax recently introduced by the provincial government won’t make much of a difference on the demand, adding most developers claim they can prove the sales of new units are with people in B.C.
Last year, the city broke a record that went all the way back to before the 2008 recession, handing out $879 million on building permits.
The record for building permit values was $792 million, set in 2008.
In 2014, the city handed out $698 million in building permits, while in 2013, 2012 and 2011 issuing $674 million, $514 million $615 million in permits respectively.
