MNI DATA IMPACT: Canada Building Permits Fall on Vancouver Fee>

--Total Permits -13% M/M; Residential -17.2%; Non-Residential -5.7%

     By Greg Quinn

     OTTAWA (MNI) - Canadian building permits fell more than expected 

from a record high in May after Vancouver introduced a new development 

charge. 

     The dollar value of permits, an indicator of future construction 

activity, fell 13.0% in May, more than the MNI median calling for a 

decrease of 7.5%. Permits climbed 16.0% to a record C$9.5 billion in 

April as Vancouver developers accelerated projects before the new fee 

took effect. 

     Vancouver dominated the report with a 55.6% plunge in permits in 

May to C$901 million. Permits in the city jumped to C$2 billion from 

C$965 million between March and April. 

     Excluding Vancouver and rest of the province of British Columbia, 

permits rose 3.2% in May. 

     Vancouver's housing market has drawn attention from policy makers 

concerned that a recent boom was being fueled by speculators and foreign 

buyers, pressuring local residents to take on bigger mortgages. While 

the market has slowed this year after new taxes on foreigners and 

vacant apartments, the potential of a sudden correction remains a risk 

to Canada's economy. 

     Nationwide residential permits fell 17.2 percent in May following a 

26.6% gain in April, Statistics Canada said Monday from Ottawa. 

Non-residential permits fell 5.7% after an April increase of 1.4%.

     From a year earlier, the total value of building permits declined 

by 1.9%, Statistics Canada said. 

--MNI Ottawa Bureau; tel: +1 613-314-9647; greg.quinn@marketnews.com

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