Canada's construction industry enjoyed a record year in 2005, as the value of building permits soared past $60 billion for the first time.

Statistics Canada reports contractors took out a record $60.7 billion worth of building permits last year, up 9.3 per cent from 2004 levels.

The annual level of permits has increased steadily for 10 consecutive years.

December was a record month, with $6.3 billion in permits issued. The figures were skewed, however, by a huge jump in the number of approved multi-family projects in Toronto, as builders rushed to beat higher building permit fees and development charges.

In Ottawa, the total value of permits issued last year rose 8.1 per cent to $1.83 billion, on the strength of large institutional projects such as the new Canadian War Museum and the new Royal Ottawa Hospital. Non-residential construction rose 75 per cent, while the overall value of residential building dropped almost 25 per cent as housing starts pulled back to more normal levels.

In the local residential sector, the biggest drop was in the multiple category, where the value of permits plunged 33.5 per cent compared to 2004.

Nationally, British Columbia and Alberta fuelled most of the gain in construction activity last year, both residential and non-residential. Vancouver, Calgary and Edmonton posted annual gains well ahead of other cities, while Montreal and Toronto saw the value of permits decline.

In Alberta, the value of non-residential permits soared 68.8 per cent to a record $4.2 billion while in British Columbia, the value of non-residential permits surged 54.7 per cent to $3.2 billion.