Highlights
- According to Statistics Canada, the value of building permits reached $426.7 million in the Quebec City census metropolitan area (CMA) in the second quarter of 2013, up 25.2% from the previous quarter.
- The non-residential sector was up 95.1%, while the residential sector continued its gradual decline, down 8.8%.
Commentary
The non-residential sector continues to be very robust this year as the value of building permits was up 95.1% in the second quarter. The commercial sector is the most active component thanks to improvements to various shopping centres, not to mention the arrival and/or expansion of various major retail chains. The institutional sector is also abuzz as several additional projects currently on the drawing board could take shape by December. In the industrial sector, the need to invest in order to stay competitive remains a concern throughout the region, despite the springtime lull.
The value of building permits in the residential sector was down 8.8% in the second quarter. This gradual decline is in line with our expectations. In terms of construction starts, 2012 was an exceptional year (6,416 units); this number is expected to gradually return to a more sustainable level of 5,000-5,500 new units in 2013.
Louis Gagnon
Senior Economist
Quebec International
