MNI DATA ANALYSIS:Vancouver,Toronto Drag Cdn Building Permits>

By Yali N'Diaye

     OTTAWA (MNI) - The value of permits issued by Canadian 

municipalities edged down 0.1% in July to C$8.2 billion, following a 

1.3% decline in June, Statistics Canada reported Thursday, indicating 

lower construction activity ahead. 

     On a 12-month basis, however, construction intentions increased 

0.4% in July after a 4.1% decrease in June. 

     The report showed a mixed picture overall, both across sectors and 

regions, although British Columbia and Ontario weighed as Vancouver and 

Toronto recorded double-digit declines. 

     --MULTIPLES DRAG RESIDENTIAL SECTOR 

     Construction intentions decreased 0.3% in the residential sector, 

led by a 1.1% drop in multiple-family dwellings on the back of a 5.8% 

decline in June. 

     Building permits for single-family dwellings were up 0.6% after 

decreasing 2.4% in June. 

     --NON-RESIDENTIAL REBOUNDS 

     In the non-residential sector, building permits edged up 0.2%, 

following a 4.6% gain in June. 

     The July gain was led by the industrial sector, where construction 

intentions rose 16.0%, the largest monthly increase since December 2017. 

     Meanwhile, permits for commercial buildings fell 5.0% and they were 

down 2.0% in the institutional sector. 

     --MIXED REGIONAL PICTURE 

     Looking at regional data, permits were down in half of the 

provinces, and 19 of 36 metropolitan areas, providing a mixed picture. 

     British Columbia led the decline at the provincial level with 

permits down 11.0%, led by a 20.8% drop in multi-family construction 

intentions. As a result, residential permits fell 15.4% in the province. 

     In particular, permits in Vancouver were down 13.5%, more than 

erasing June's 7.0% advance. 

     Ontario, the other heavy weight among provinces, recorded a 2.4% 

decrease, led by an 11.1% drop in non-residential permits, while the 

residential sector recorded a 2.5% increase. 

     Building permits fell 10.0% in Toronto after decreasing 5.8% in 

June. 

     In a July 26 report, Canada Mortgage and Housing Corporation 

estimated that the country's housing market remained "highly vulnerable" 

due to evidence of overvaluation and price acceleration, notably in 

Toronto and Vancouver. 

     That being said, in some areas of Vancouver, it noted an 

accumulation of high inventories over the last two quarters due to 

sustained falling sales volumes. 

     Still, "as both unsold inventories of homes and apartment vacancy 

rates remain low, there continues to be low evidence of overbuilding" in 

Vancouver, CMHC said. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

[TOPICS: M$C$$$,MACDS$]