In an article in today’s Vancouver Sun, Derrick Penner informed us that builders and developers piled another $3.3 billion worth of planned large construction projects onto British Columbia’s Major Projects Inventory between June and the end of September, increasing the list to a total of $135.1 billion.

There are now 843 projects on the list, which is compiled quarterly by the Ministry of Economic Development, with approximately 417 projects already under construction in B.C..  This is the 17th straight quarter that the inventory has increased.

Minister of Economic Development, Colin Hansen, said the inventory “is the best indicator of real, tangible [economic] activity for the years ahead”.  He added that the size and time span of the inventory offers hope for the B.C. economy after the 2010 Olympics.

Manley McLachlan, president of the B.C. Construction Association, said the breadth of work available on the project lists is comforting.  However there are challenges ahead, notably the recruitment of new workers and the rising dollar value which reflects the inflating construction costs as demand for buildings – and not just in B.C. – drives up the prices for materials such as steel and concrete as well as labour.

The Canada Mortgage and Housing Corporation expects the average single-family house price to reach $900,000 in Greater Vancouver in 2008 as an influx of new residents (expected to be around the 35,000 mark) and job creation (approximately 33,000) keep the city in a seller’s market. The CMHC further forecast that the region’s average price across all property types would rise by 9% from 2007 and would generate the demand for 18,500 new housing starts.