While I often prefer to show a lengthy PowerPoint presentation at conferences, at the suggestion of my fellow panelists I restricted my slide show to the following four images.The first slides were intended to highlight how the apparent density of a project is often a function of whether a portion of the FSR/FAR is in a basement or not. The next slide was intended to highlight the opportunities to improve the appearance of multiplex developments. The final slide was intended to send the message to politicians that if the appearance and 'fit' with adjacent buildings isn't improved, some may be looking for work after October 17th.
The following were my key 'takeaways' from the conference.
- Approvals are taking a lot more than anticicpated - often 6 to 12 months in Vancouver which is exacerbating the financial feasibility. (In Victoria approvals can be obtained in 6 weeks.)
- The economics are much more challenging than most people think. While it is not necessary to achieve presales, in many parts of Vancouver a builder needs to sell for $1300 per sq.ft. or more to make any money. Rental projects do not pencil out at all.
- Given the above, many builders are not buying extra density from Vancouver since the cost is $140 per sq.ft.on larger lots on the Westside.
- Another problem is BC Hydro which has a monopoly but often doesn't agree to hookups when required. Also, pad mounted transformers can be expensive.
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