Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

  • 2017 was a record year for housing starts in Canada, but…

    According to Bloomberg (using data from CMHC), 2017 was a surprising record year for housing starts in Canada: 219,675 units. This is the most since 2007 and is up from 197,916 units in 2016.

    The explanation: job growth (nearly 400,000 new jobs) and population growth were both more robust than expected.

    Multiple unit project starts are also up significantly with 142,840 units starting in 2017. This is a 15% increase from the prior year. Of these units, 102,516 of them were “apartment-like homes.”

    But all of this is nationwide data. Look at what happened in Toronto and Vancouver:

    The increased activity mostly sidestepped land-constrained Toronto and Vancouver, the country’s two most expensive markets, but was robust in the suburbs and less pricey surrounding cities. Starts in Toronto fell 1 percent to 38,738 in 2017, while declining 6 percent in Vancouver to 26,204 units.

    This is not because of a lack of demand. It’s becoming systematically more difficult and more costly to build new housing in these two markets.

  • California State Senator wants to mandate denser and taller zoning near transit

    California State Senator, Scott Wiener, introduced 3 new bills at the beginning of this year intended to address the statewide housing shortage and continue the pivot from a housing-last agenda to a housing-first agenda.

    Here is a summary of the 3 bills:

    These three bills (1) mandate denser and taller zoning near transit; (2) create a more data-driven and less political Regional Housing Needs Assessment process (RHNA provides local communities with numerical housing goals) and require communities to address past RHNA shortfalls; and (3) make it easier to build farmworker housing while maintaining strong worker protections.

    And here is a bit more information about the first one:

    SB 827 creates density and height zoning minimums near transit. Under SB 827, parcels within a half-mile of high-connectivity transit hub — like BART, Muni, Caltrain, and LA Metro stations — will be required to have no density maximums (such as single family home mandates), no parking minimums, and a minimum height limit of between 45 and 85 feet, depending on various factors, such as whether the parcel is on a larger corridor and whether it is immediately adjacent to the station. A local ordinance can increase that height but not go below it. SB 827 allows for many more smaller apartment buildings, described as the “missing middle” between high-rise steel construction and single family homes.

    The belief is that transit-oriented sites in the state of California have the potential to accommodate up to 3 million additional housing units.

    Fewer barriers to creating new housing. More data. And less politics. You can read more about Wiener’s 2018 housing package over on Medium.

  • What happened (in tech) in 2017

    I am still catching up on reading after being mostly offline last week, minus short windows where I would go online to upload these daily blog posts.

    Here is a post that Fred Wilson wrote on new year’s eve about “what happened in 2017.” It has become a tradition of his to write a “what happened” post on the last day of the year and a “what is going to happen” post on the first day of the new year. He then uses these posts to keep track of how well he does on his predictions for the year.

    His three headlines for 2017 were: (1) crypto; (2) the beginning of the end of white male dominance; and (3) the tech backlash (i.e. tech is the new Wall Street). It is worth a read. Crypto was an obvious one, but he has been writing about it – and investing in the space – for years. Of particular interest in this post is how he positions it as the basis for Internet 3.0 (the decentralized internet).

    What is also clear from the post is just how ingrained tech has become in our everyday lives and how much it reaches beyond simply the tech industry. I have been saying this for years, which is why I spend a lot of time writing about it on this blog.

  • What’s with all these tower cutouts?

    One question that was nagging me after seeing Hong Kong’s “typical” tower typology was: what’s with the cruciform tower plan and all these notches and cutouts? Wouldn’t it be far more efficient to square off the floor plates? I figured that it had to be in response to building regulations. I was going to mention that in this post on the typical “8-units-per-floor” tower plan, but I wanted to first understand what was going on. Thankfully a reader of this blog who is from Hong Kong was kind enough to send me a wonderfully detailed email outlining some of Hong Kong’s building regulations and how they impact the design of tall buildings.

    It turns out that there are requirements for both “natural lighting and ventilation” and for “external air.” All rooms for habitation, as well as offices, bathrooms, and kitchens, are subject to these requirements. There are prescribed window areas for the “glass areas” and for the “openable areas”, both of which are a function of the room size. The glass area must equal the room area divided by 10. And the openable area must equal the room area divided by 16. I presume that these are minimum sizes because they don’t feel all that big.

    For the “external air requirement”, the room must face a street no less than 4.5m in width or it must face an unobstructed space as delineated by “rectangular horizontal planes” and by “inclined planes.” The incline planes are drawn in section from the sill of the window and the angle depends on the type of room. The rectangular horizontal planes are drawn in plan and have a minimum area of 21 square meters (or ~225 square feet). If you would like to deep dive into more of the technical details you can do that here. But suffice to say that it is these requirements which are driving all of the tower notches and cutouts.

    The result is tower floor plates that can look something like this:

    image

    And if we zoom into a unit (this one being a 3 bedroom apartment), you can see that both bathrooms have a window, as does the kitchen. From what I saw, there appears to be less interest in open concept floor plans. You may also finding it interesting to note some of the room dimensions (in mm) and the A/C platform sitting outside of the master bedroom. 

    image

    Finally, I should follow-up on my previous comment about tower separation distances and the ability for the above tower floor plates to be built directly adjacent to each other. Not surprisingly, this resulted in walls of towers being constructed. Ultimately this became known as the “wall effect.” So in 2011, the Sustainable Building Design (SBD) guidelines were put in place which stipulated that groups of buildings having a continuous facade length greater than 60m should comply with various separation and permeability guidelines.

    So there you have it. Every market has its local nuances. The above post is a good example of that. I also love when this blog becomes a platform for two-way discussion. I learned something new today and hopefully you did too. Thank you Hiu Yeung for your emails and for providing me with all of this information.

    Top image: Photo by me taken at Hong Kong’s Peak

  • Bentway skate trail opens in Toronto

    The new Bentway skate trail officially opened this weekend in Toronto. Click here for the hours and for info on skate rentals.

    Here are a some photos from blogTO. And here and here are two posts that I previously wrote about the Bentway project. (I still really like the original “Under Gardiner” moniker, but maybe the Bentway will grow on me.)

    The skate trail (220m track) is only the first section of the larger 1.76 km Bentway project, but I am excited to check it out. I plan to do that next weekend.

    As I mentioned before, the Bentway project is a great example of rethinking neglected urban spaces. This area under the Gardiner Expressway was/is a wasted opportunity. I’m glad we’re doing something about that.

    Image: The Bentway

  • Price of 432 square feet in Hong Kong and the future of the region

    I came across this Hong Kong apartment listing earlier in the week. Sai Ying Pun is the neighborhood.

    image

    HK$9.8 million = C$1,554,833 based on today’s exchange rate (1 CAD = 6.30293 HKD).

    At 432 square feet (net), that’s C$3,599 psf. But I have also been told that new buildings here could easily fetch C$5,000 psf and probably much more.

    There’s certainly a tremendous amount of wealth in Hong Kong. However, the topic of discussion right now is the new money being generated in mainland China.

    I am curious what all of this could mean for Hong Kong, it’s place within the PRC, and for real estate long-term.

    Hong Kong’s Basic Law stipulates that the region shall maintain a capitalist system and that its current way of life shall be preserved outside of the PRC. 

    But that constitutional document is set to expire in 2047 – fifty years after the handover from the British. And one would assume that China would favor more, rather than less, integration. 

    Already the Cantonese language – the official language of HK along with English – seems to be getting diluted in favor of the “speech of the officials.”

    So what will Hong Kong look like by the middle of the 21st century? Will it simply become a “second city” to Beijing and Shanghai?

    Place your bets in the comments below. Or call Miss Winnie.

  • The longest outdoor escalator system in the world

    This morning I took the mid-level escalators down to Hong Kong station so that I could catch the express train to the airport. At over 800m, it is supposedly the longest outdoor covered escalator system in the world.

    If you’ve ever walked the streets of Hong Kong you’ll know that the ground plane can be inhospitable at times. There’s limited space, but no shortage of steep pitches. I can’t imagine having a physical disability and trying to navigate this city.

    So this system must have been a real innovation when it was constructed in the early 90′s. In total it moves up and down about 135m in elevation. That’s about the equivalent of a 45 storey tower. And I got down from the mid-levels and was on a train to the airport within 15 minutes.

    But because the streets here are so narrow it’s a unidirectional system with one line of escalators. They bring people down to the CBD during the morning rush, but then the direction flips and they bring people up the hill for the remainder of the day — until midnight I believe. Living near these escalators is considered a win.

    Hong Kong Island surely isn’t the easiest of environments in which to build and operate one of the world’s most important global cities. There’s relatively little developable flatland. But they more than made it work by being creative and by building up. Hong Kong is not just a tall city, but a truly vertical city.

    Too bad my efficient morning commute was followed by a cancelled United flight. Tomorrow is not going to be a fun day travel.

  • Hong Kong’s “8-units-per-floor” tower plan

    One of the pedestrian overpasses in Central has an exhibition running right now called Density 2.0. Here is a photo of one of the posters talking about Hong Kong’s typical “8-units-per-floor” tower plan.

    Noteworthy is the fact that the floor plates contemplate minimal tower separation distances. This allows multiple towers to be built right beside each other. As a point of reference, the guideline in Toronto is 25m between tall buildings.

  • Frenetic dim sum

    image

    We went for dim sum (breakfast) yesterday morning. We wanted an authentic experience and found a place in Monocle’s Hong Kong travel guide called Lin Heung Lau. It’s an “institution” in Central that has been around since 1926. Locals would later tell us that the place is good but they probably would have sent us elsewhere.

    image

    It was of course packed when we arrived and we quickly learned that you need to be aggressive in this place if you hope to get any food. There’s no line at the front and nobody is going to seat you. Instead, you circulate around the room and find your own spots. If nothing is available, you simply hover over a communal table until something opens up.

    image

    This also means not waiting for the dim sum carts to come around to your table. If you do that, none of the good stuff will be left. Pull out your sharp elbows and go to work as soon as you see one come out of the kitchen. This is how most of Hong Kong seems to work. There’s too many people in too little of a space to be a polite Canadian.

    image

    I thought the whole experience was great. Although, I could have probably done without the laundry (underwear included) hanging up in the bathroom.

    image

  • Inside-outside

    Take a look at this photo from Central in Hong Kong and note the MEP (mechanical, electrical, and plumbing) systems running up the cutout in the middle of the tower. Also note the bamboo scaffolding next door and the epic terrace on top of the ground floor bank. The building on the opposite side put parking on top of its podium.

    image

    I was told that systems are commonly run on the outside of buildings here to maximize interior square footage. Again, space is a precious commodity in this city. But it also speaks to not having to worry about freeze-thaw cycles. Winter in Hong Kong has so far equaled me walking around in a t-shirt.

    These exposed systems look ugly as all hell, but I suppose they also mean not having to break open drywall when you have a problem.

    I am fascinated by the relationship that buildings have between interior and exterior space. In cold cities like Toronto we are forced to hermetically seal off our buildings from the elements. We have to worry about thermal bridging and about heat tracing cold spots.

    But in a city like Hong Kong I would imagine that the greater concern is stifling heat and humidity. All of this comes through in the built form.