The value of building permits in the city up to the end of September is already more than double the total for 2010, albeit with fewer permits issued.
Mayor Basil Stewart said the upswing is due, in part, to tax incentives established by council last year.
"What we did last year...that council agreed to with lowering the taxes on commercial (properties), it sends a signal that lower taxes will help draw development," he said.
"This is one of the banner years we've had. Interest rates are low, and there are some new businesses coming to town."
The value of building permits last year reached just over $18.6 million. The year-to-date value for 2011 is more than $37.6 million.
Chief among this year's construction is the new Summerset Manor, which alone accounts for $12.7 million of the 2011 total.
Other large projects include a new seniors home on Roy Boates Avenue worth $3 million, the $2-million addition of a dialysis unit to Prince County Hospital, and a $4-million career technology centre beside the Western School Board offices.
Some other large permits still haven't been submitted, such as those for roughly $10 million for Holland College's renovation of the Waterfront Mall.
"We could hit close to $50 million before the end of the year in new development, and that is certainly great news for the city," said Stewart. "Over the last five years, we've been running around $15 to $20 million (per year). Once the snowball starts, it can build up fairly fast."
While commercial properties make up the majority of this year's permit value, several multi-unit residential construction projects did factor into the overall picture.
There are two seniors housing complexes along Pope Road, near the Salvation Army Church and the Summerside Tax Centre.
Stewart said he hopes to introduce tax incentives in next year's budget that are similar to what council implemented in 2010 for commercial rates.
The mayor also continued to make a pitch for another large construction project - a provincial museum that will be awarded to an Island community in the near future.
The museum falls under the portfolio of the Province's new tourism and culture minister, O'Leary's Robert Henderson.
"We're hoping that (museum) will be in Summerside to give Prince County a boost, but we'll have to see how that goes. That's not included in this year's permits," he laughed. "Prince County needs a shot in the arm the same as Kings County. It's great to see Henderson appointed minister of tourism and culture, so we look forward to meeting with him."