Construction intentions in Ottawa soared in 2007 compared to the year before, with gains of more than 20 per cent seen across the housing sector.

The total value of approved construction projects jumped 20.2 per cent in 2007 to $1.97 billion, mainly because of a 31-per-cent increase in values for the residential sector, to $1.1 billion.

"The residential sector really rebounded this year for Ottawa after declining in 2005-06, as the economy in the Ottawa area is quite dynamic, with good employment and good consumer confidence," said Statistics Canada analyst Etienne Saint-Pierre. "The apartment vacancy rate was also relatively low in 2007 at 2.3 per cent, declining for the third year, and it is the lowest rate since 2002. This is a good indication for the demand for housing."

Multiple-unit housing saw an especially strong gain during the year, with building permit values for the segment soaring 49.4 per cent to $479.8 million.

Mr. Saint-Pierre noted that 55 per cent of all residential units approved in 2007 were multiple-family units, compared to 53 per cent in 2006.

However, the freehold housing segment also posted a healthy gain of 20.1 per cent, with values rising to $647.6 million.

Meanwhile, on the non-residential side, there was a gain of 8.2 per cent to $844.5 million, driven by construction intentions in the institutional sector, said Mr. Saint-Pierre.

The sector had a 13.9-per-cent increase to $324.6 million as several projects were approved for schools and medical buildings, consistent with the national pattern.

The industrial segment had a larger percentage gain but carried less weight in the overall non-residential increase, with the sector seeing a 55.7-per-cent jump in values to $50.9 million. The commercial segment was relatively stable compared to a year ago, gaining 1.3 per cent to $468.9 million.

"The commercial sector's value was the highest since 2003, with its increase mostly driven by recreational buildings such as sports complexes, arenas, skating rinks and swimming pools, as well as hotels and restaurants," said Mr. Saint-Pierre. "The office subcategory was relatively stable compared to 2006."

Overall, Mr. Saint-Pierre noted that the month had been an impressive one for Ottawa, especially because of the strength of the residential sector throughout 2007, although December had been somewhat weaker than the previous four months.

"Ottawa ranked sixth in terms of the dollar increase among the 34 census metropolitan areas, and ranked fourth in terms of residential building construction," he said. "There was a decline in December compared with the strength of August, September, October and November, but when compared with last year, it was still relatively high."

On a year-over-year basis for December alone, there was a 66.9-per-cent increase in total building permits compared to December 2006, with the dollar value rising to $152.2 million.

The non-residential sector was the star of the show in December, with values for the segment nearly tripling to $84.8 million from just $29.3 million a year earlier, while the housing category had a more modest 8.9-per-cent gain to $67.4 million as a result of a drop in multiple-family construction intentions.

On a national basis, the value of building permits for all of 2007 rose by 12.1 per cent to $74.3 billion, hitting a new annual record. Non-residential permit values rose by 13.8 per cent to $28.7 billion, while residential values increased by 11 per cent to $45.6 billion as a result of higher construction prices.