Completions are a different story with skilled labour shortages, red tape and transportation issues burdening the region. Completions still aren't keeping up with starts and the level of units under construction is ballooning to new record levels.
Monday, October 22, 2007
CMHC September Starts and Completions
CMHC released data on Vancouver CMA Starts and Completions today and not surprisingly, starts are staying at high levels. With building homes being such a remarkably profitable business right now in the Vancouver area even with land costs and labour shortages it is no surprise to see builders wanting to build as much supply as possible at these prices. Construction on 2157 new homes was started last month in the Vancouver CMA. Get those presale contracts signed - suckers.
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5 comments:
I'm surprised starts weren't hurt by the strike. I guess what counts as a start is not related to obtaining the permit.
Do you have a graph of "under construction" numbers as well?
I really hope we don't see a lot of abandoned half-built buildings if there is a massive drop in prices. A few houses are one thing, but a 20 story tower half done is terrible.
Under construction numbers for Vancouver CMA won't be released until later this week or early next week.
My simple math (previous under construction + starts - completions = currently under construction) tells me that under construction will be a new record high.
I really hope we don't see a lot of abandoned half-built buildings if there is a massive drop in prices.
Where were you in '82?
I must say though that although there were abandoned low rises and SFH throughout the city, I don't remember any high rises that were halted. But there weren't a lot of high rises being built at that time really, as the West End had been pretty much built out and the new areas had yet to get started.
Economics 101
High prices = high supply = oversupply = lower prices
I don't remember any high rises that were halted. But there weren't a lot of high rises being built at that time really
Locally, I think the economics of the situation is such that a building is better off finished once it has broken ground, barring complete market meltdown.
When I was in Bangkok circa 2001, I did see quite a few concrete hulks, relics from the 1997 Asian flu that reached us all the way here.
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