Construction sites like this one on Ledgerwood Rd. are a common sight in Nanaimo as the development permit values remain high. (Jordan Davidson/NanaimoNewsNOW)

By Jordan Davidson

$248 million

Nanaimo development values poised for second highest year ever

Nov 19, 2021 | 5:30 AM

NANAIMO — Significant investments in public infrastructure and nearly complete housing units contributed to what’s looking to be a major year for development in Nanaimo.

With a permitted construction value of $248 million as of Oct. 31, 2021, the calendar year is shaping up as the second best year on record but is still almost $200 million shy of 2019 where building permits reached record levels of $445 million.

City director of development approvals Jeremy Holm said some of the factors which made 2019 such a strong year were relevant again this year.

“It was largely market driven. We’re still seeing strong market demand for residential construction, we’re still seeing that pace all over the community. This year we’re seeing some significant investments in public infrastructure as well.”

The $21 million in upgrades to the ICU at the Nanaimo Regional General Hospital and a 79 unit, five storey multi-family development on Haliburton St. helped contribute to high numbers this year.

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The $12 million worth of upgrades to Hammond Bay Elementary to add a second storey was also a significant contributor.

Holm said there’s definitely been a shift from single-family to multi-family units which started in 2019, slowed down a bit in 2020 due to the pandemic, but is starting to go up again.

“We’ve seen a demand for housing and the value of housing increase quite significantly. We’ve had historically low vacancy rates and there’s definitely been a pent-up demand.”

He said it’s hard to predict exactly what will happen next year, but he is still anticipating the upward trend to continue.

“We’re expected to see a strong year next year and it’s difficult to tell where things are going to go trend wise, but at this point in time I don’t see a huge change from this year as far as construction activity.”

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jordan@nanaimonewsnow.com

On Twitter: @JordanDHeyNow