Constructi­on pace de­clines

Builders fo­cus­ing on ex­ist­ing de­vel­op­ments

Calgary Herald - Calgary Herald New Condos - - Front Page - MARTY HOPE

Sales con­tinue to oc­cur in Cal­gary’s multi-fam­ily sec­tor as builders and de­vel­op­ers con­tinue to push to­ward com­ple­tion of ex­ist­ing projects.

While this is hap­pen­ing, constructi­on starts have dwin­dled dra­mat­i­cally from a year ago — and the de­cline is much more no­tice­able in Cal­gary than in Ed­mon­ton, says Canada Mort­gage and Hous­ing Corp.

In Cal­gary, work started on 254 apart­ments, town­houses and semi-de­tached homes in July, a de­cline of 43 per cent from the same month a year ago.

“With in­ven­to­ries ris­ing over the past 12 months and fur­ther in­creases ex­pected, it is likely multi-fam­ily pro­duc­tion will re­main weak through the bal­ance of the year,” says Lind­say Ken­dall, Cal­gary-based mar­ket an­a­lyst for CMHC.

From Jan­uary to July, 686 units were started — a de­crease of 88 per cent from the 5,935 starts recorded for the same pe­riod last year.

In the pro­vin­cial cap­i­tal re­gion, CMHC says work started on 178 multi-fam­ily units of all types in July, just 14 per cent off the year­ago to­tal of 208.

So far this year, started have to­talled 973 units — rep­re­sent­ing a 67 per cent fall from the 2,994 units for the first seven months of 2008.

Strong gains for both semide­tached and town­houses were coun­tered by zero apart­ment starts in July, says Richard Goatcher, se­nior mar­ket an­a­lyst in CMHC’s Ed­mon­ton of­fice.

“Apart­ment starts are ex­pected to re­main weak this year as the in­dus­try deals with an el­e­vated sup­ply of con­do­minium starts,” he says.

Cal­gary Her­ald Archive

A crane on a constructi­on site for a condo de­vel­op­ment in 2008.

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