Commercial and residential permits saw greater-than-expected growth in October

This significantly exceeded prior expert forecasts, according to StatsCan

Commercial and residential permits saw greater-than-expected growth in October
Stronger demand and an increased volume of construction intentions have pushed the value of Canadian commercial and residential real estate permits to higher-than-expected levels in October, according to data from Statistics Canada.

Non-residential building permits contributed much to the increase with a 5.5% month-over-month jump, mainly because of intentions for commercial buildings especially in the strengthening Quebec and Ontario economies.

Meanwhile, the value of residential permits grew by 2.3% after three straight months of declines, Reuters reported.

In Ontario, multi-family permits rose by 23% on condominiums and townhouses, and single-family building permits surged by 3.3%.

Read more: Canadian housing sector exhibiting overvaluation and price acceleration – CMHC

This was the first time that the value of residential permits in Ontario has increased since May. In response to the provincial government implementing market-cooling measures earlier this year, Toronto home sales and prices have steadily declined, although signs of increased stability have become apparent recently.

Overall, the 3.5% rise in the value of permits from September exceeded observers’ prior forecasts of a 1.5% gain.

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