Building permits for the first quarter of the year fell by 12.9 per cent in Ottawa compared to the same period a year earlier, despite strength in the housing sector, according to new data from Statistics Canada.

The value of construction intentions for the January-to-March period fell to $473.2 million from $543.1 million, purely because of a decline in all three non-residential categories. The total value of non-residential permits fell by 39.3 per cent to $172 million in the first quarter, with institutional permits dropping 69.9 per cent to $162.3 million and commercial values decreasing by 25.9 per cent to $149.7 million. Industrial permits, which have a lesser weight than the other two categories, fell by 77.9 per cent to just under $6 million.

However, year-to-date residential values rose by 15.9 per cent to $301.2 million, mainly because of a 35-per-cent increase in construction intentions for the multiples segment, to $141 million. The single-detached category also had an increase of 3.1 per cent, to $160.2 million.

For the month of March alone, total values plummeted 35 per cent year-over-year to $151.1 million due to widespread losses across both the residential and non-residential sectors.

The non-residential category was the main driver for the loss, falling by 67.9 per cent from a year earlier to $26 million, as the commercial category had a huge 79.9-per-cent decline in values to $14.1 million because of drops in construction intentions for office buildings, recreation buildings, and trade and service buildings, according to Statistics Canada analyst Nicole Charron.

The industrial sector also saw a large 75.9-per-cent decline from a year earlier to $823,000, because of a major drop in planned construction of utilities and transportation buildings.

The only bright spot in the monthly figures was the institutional sector, which gained 44.5 per cent to $11.1 million, due to increases in permits for medical buildings and welfare and home buildings.

"The non-residential sector had a very strong month in January but values have been low in February and March," Ms. Charron said.

The residential sector also posted a decline of 17.3 per cent year-over-year to $125.1 million, as the singles segment had an 8.8-per-cent drop in values to $67.6 million and the multiples category had a 25.5-per-cent decline to $57.5 million.

The decline was more severe in multiples, mainly due to a big drop of around 81.4 per cent for apartments, although there was a 9.4-per-cent increase in row housing values, said Ms. Charron.

"2007 was a really, really strong year, but in 2008 we've seen things start to cool off and slow down, but Ottawa's still doing very well," she added, noting that residential permit values in March were the highest since October 2007.

On a national basis, building permit values rose by 1.9 per cent for the first quarter to $17.3 billion. Year-to-date residential values rose to $10.6 billion from $10.3 billion, but the gain was offset slightly by a 0.6-per-cent decline in non-residential values to $6.7 billion.