By Dominic Abassi

Construction Association report shows 2016 permit values near $300M in Nanaimo

Nov 23, 2016 | 2:26 PM

NANAIMO – The value of construction projects in Nanaimo continues to soar, with over $100-million worth of permit values recorded between July and September, according to a report.

The third quarter update report from the Vancouver Island Construction Association (VICA) shows building permit values in Nanaimo for the most recent three month period were a little more than $119-million. That is a 50 per cent increase over the same quarter last year, according to the report. More than $102-million of that 2016 permit value is attributed to residential projects.

“The non-residential went up about 27 per cent year-over-year, like third quarter over third quarter, and oddly enough so did the residential,” said VICA chief executive officer Greg Baynton. “It’s one jurisdiction on the island where the growth has been equal.”

Baynton says it’s hard to get the exact data, but it appears the increases in activity can be attributed to both more permits and higher value. He says the most important thing to note is that the bigger permits can lead to activity that lasts a few years. Baynton says commerce in Nanaimo is very evident.

“It’s (Nanaimo) the centre of the island. It’s at the hub. It’s perfectly situated logistically with ferries and other things,” he said. “Real estate, relatively speaking, compared to say jurisdictions like Victoria, is lower. So I think there are some real advantages in the mid-island in terms of growth.”

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He says the outlying areas of the regional district are also showing potential and expanded growth as older people retire, cash out on their mortgages and buy into areas just outside of Nanaimo.

Baynton says he expects a bit of a softening in the residential sector moving forward because of the changes to the mortgage lending rules. Despite that, he says they are still forecasting unprecedented levels of investment in residential projects.

Baynton notes one challenge to keeping the sector strong is finding the skilled workers needed to keep up with the work they have. The report says construction employment across the island rose 12.6 per cent compared to the second quarter. He says some of their members would take on more work because it’s available, but they’re having a hard time finding the skilled people they need. He says they are working on developing the workforce.

The VICA report projects total building permits will rise 30-35 per cent this year island-wide. To date, according to the report, there has been $298-million worth of permit values in Nanaimo in 2016.

— With files from Daryl Major —