Developers becoming less than enthused about massive towers as 80-storey condo building approved — A project for 1,466 units in Burnaby belies the market trend, with developers shifting to build shorter buildings
Developers becoming less than enthused about massive towers as 80-storey condo building approved — A project for 1,466 units in Burnaby belies the market trend, with developers shifting to build shorter buildings
*[…] Even though Pinnacle International’s project for 1,466 condo [units] could include one of the tallest residential buildings in Western Canada, the trend in the market is in the opposite direction with developers shifting to build shorter buildings.*
*“We are seeing a number of developers make a switch to a sweet spot of building in between 35 to 45 storeys,” said Richard Bernstein, principal at Chris Dikeakos Architects.*
*And there are several reasons. Jon Bennest of Zonda Urban, which tracks real estate data for developers, said acquiring financing for construction typically requires pre-selling about 60 per cent of units.*
*“As taller buildings typically have more units, they require a higher-dollar volume of presale contracts to be in place.”*
*In spring, one realtor selling presale units at the 60-storey Curv condo building in Vancouver on Nelson Street was offering a Porsche GT3 for buyers who close on the purchase when the building is completed in 2029.*
*[…] There isn’t an easy way to track how long it takes for approved projects to get to the launch of a presale campaign, according to Bennest.*
*“The challenge is that it could be a variety of factors ranging from the economy, poor decisions, other priorities, lack of resources or finances. It could be a speculator looking to (get an) approval and sell to another developer, higher costs to build, and many more factors.”*
*When Pinnacle bought the four-acre site at 9850 Austin Road in 2018 for about $220 million, it was the largest deal in a year that broke total land sales records in Metro Vancouver at $5 billion, according to Vancouver Market, a blog that tracks investment and development.*
*“It takes a very long time for high-rise buildings to get approved. You have to have a lot of resources and be able to handle market changes and changes in the municipality,” said Grace Kwok of Vancouver-based Anson Realty Ltd., who will market Pinnacle’s building.*
*In 2019, Pinnacle proposed three towers, including one of 80 storeys. Details were presented to Burnaby city council in May 2022 and the project was finally approved after its fourth reading this week.*
*[…] Bernstein said there is a point when it stops making sense to push higher because the cost of structural systems — the number of elevators or the complexity of window-washing systems — is complicated.*
*“When you are close to 50 storeys and higher, you have to use mass dampening to counter the natural sway of the building,” he said.*
*This involves installation of a giant tank filled with water at the top of such buildings to stabilize them — one of the factors that can cost a premium, said Bernstein.*
FromundaCheeseLigma on
Developers aren’t the ones that need those units to launder their money…
syrupmania5 on
Developer taxes are too high so margins are bad. The end.
yyj_paddler on
>*the trend in the market is in the opposite direction with developers shifting to build shorter buildings.*
I hope so. And I hope that we’ve helped make this possible by fixing some ridiculous housing regulations that made an 80 story building necessary in an area that is still widely dominated by one story buildings.
4 Comments
Excerpts from [article](https://vancouversun.com/business/real-estate/burnaby-approves-80-storey-condo-building) by Joanne Lee-Young:
*[…] Even though Pinnacle International’s project for 1,466 condo [units] could include one of the tallest residential buildings in Western Canada, the trend in the market is in the opposite direction with developers shifting to build shorter buildings.*
*“We are seeing a number of developers make a switch to a sweet spot of building in between 35 to 45 storeys,” said Richard Bernstein, principal at Chris Dikeakos Architects.*
*And there are several reasons. Jon Bennest of Zonda Urban, which tracks real estate data for developers, said acquiring financing for construction typically requires pre-selling about 60 per cent of units.*
*“As taller buildings typically have more units, they require a higher-dollar volume of presale contracts to be in place.”*
*In spring, one realtor selling presale units at the 60-storey Curv condo building in Vancouver on Nelson Street was offering a Porsche GT3 for buyers who close on the purchase when the building is completed in 2029.*
*[…] There isn’t an easy way to track how long it takes for approved projects to get to the launch of a presale campaign, according to Bennest.*
*“The challenge is that it could be a variety of factors ranging from the economy, poor decisions, other priorities, lack of resources or finances. It could be a speculator looking to (get an) approval and sell to another developer, higher costs to build, and many more factors.”*
*When Pinnacle bought the four-acre site at 9850 Austin Road in 2018 for about $220 million, it was the largest deal in a year that broke total land sales records in Metro Vancouver at $5 billion, according to Vancouver Market, a blog that tracks investment and development.*
*“It takes a very long time for high-rise buildings to get approved. You have to have a lot of resources and be able to handle market changes and changes in the municipality,” said Grace Kwok of Vancouver-based Anson Realty Ltd., who will market Pinnacle’s building.*
*In 2019, Pinnacle proposed three towers, including one of 80 storeys. Details were presented to Burnaby city council in May 2022 and the project was finally approved after its fourth reading this week.*
*[…] Bernstein said there is a point when it stops making sense to push higher because the cost of structural systems — the number of elevators or the complexity of window-washing systems — is complicated.*
*“When you are close to 50 storeys and higher, you have to use mass dampening to counter the natural sway of the building,” he said.*
*This involves installation of a giant tank filled with water at the top of such buildings to stabilize them — one of the factors that can cost a premium, said Bernstein.*
Developers aren’t the ones that need those units to launder their money…
Developer taxes are too high so margins are bad. The end.
>*the trend in the market is in the opposite direction with developers shifting to build shorter buildings.*
I hope so. And I hope that we’ve helped make this possible by fixing some ridiculous housing regulations that made an 80 story building necessary in an area that is still widely dominated by one story buildings.