Economic News
Value of building permits up 30% in the Quebec City region
Highlights
- The value of building permits topped $468.5 million in the Quebec City census metropolitan area (CMA) in the first quarter of 2012, up 30% from the previous quarter.
- The increase in value of institutional (+197.3%) and residential (+54.5%) building permits helped to offset the decrease in the industrial (-86%) and commercial sectors (-33.1%).
- As regards building permits, Quebec City had the strongest growth among Canada’s eight largest metropolitan regions, significantly outpacing Toronto (+9.9%), Edmonton (+5.3%) and Winnipeg (+4.9%).
Commentary
The construction sector is faring well in the Quebec City region. The diversity of private and public-sector projects is also helping to maintain the value of building permits at record high levels. In the first quarter of 2012, building permits issued locally totalled $468.5 million, up 30% from the fourth quarter of 2011. In this regard, Quebec City had the strongest growth among Canada’s eight largest metropolitan regions.
Serving as a barometer, the increase in the value of building permits issued in the first quarter suggests that spring and summer will be busy periods on construction sites in the Quebec City region. According to data compiled by Quebec International, more than 120 construction projects, valued at approximately $8 billion, are currently underway. Meanwhile, nearly 100 additional projects, valued at more than $4.5 billion, are waiting for the necessary authorizations or for the right moment for work to begin.
Once again, residential projects and office buildings will be in the spotlight due to low vacancy rates (1.6% and 5.1% respectively). Additional projects will be undertaken in a variety of areas, including sciences, finance, healthcare, retail, hotels, transportation, as well as cultural, leisure and recreational services, to name but a few.
Louis Gagnon
Senior Economist
Quebec International
