Vancouver’s non-residential construction sector decreases in second quarter
July 23, 2014 by STAFF REPORT
Non-residential construction investment spending in Metro Vancouver declined by 4.4 per cent in the second quarter of 2014, according to the Vancouver Regional Construction Association (VRCA).
Non-residential spending in the second quarter of 2014 was $789 million compared to $825 million in the first quarter. While commercial building construction only saw a small drop of 1.7 per cent in that same time period ($577.7 million to $568 million), institutional-government decreased 10.4 per cent ($208.1 million to $186.4 million) and industrial building construction investment fell 11.7 per cent ($39.3 million from $34.7 million).
The current trend is consistent with the previous four quarters, said Fiona Famulak, VRCA’s president. Small declines in the largest sector of commercial spending have mitigated moderate declines in the smaller sectors of industrial and public spending.
“Commercial building investment continues to hold up well, as it has since the beginning of 2013,” she said. “While commercial market conditions are project dependent, projects in the early construction phase, such as the 31-storey Exchange office tower and the Tsawwassen Mills and YVR retail outlet projects, will add positively to future spending.”
VRCA projects a mixed outlook for the second half of 2014, with a likely gain in commercial construction spending offset by less spending on industrial and public buildings.
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