Outlook 2020 – Anson Kwok, Vice-President Sales & Marketing, Pinnacle International
Part of our series of Outlook 2020 Q&As with building industry executives
Condo Life: What is the outlook for the new home industry in 2020?
Kwok: The outlook is strong, as demand is still outpacing the supply that is coming to the market for sale and the delivery of finished product. The approval process is taking longer at the municipal levels and, in general, buildings are more complex and taller, which require longer completion times.
I would also expect new home pricing to be better paired with location and product in the marketplace. This will definitely help purchasers in their decision-making process.
CL: And for your company?
Kwok: Pinnacle International currently has four active construction sites in the GTA, and we are looking forward to increasing that to six projects under construction in 2020.
We are excited to welcome new members to our Pinnacle Uptown community in Mississauga, as Perla begins occupancy in the summer of 2020.
We are actively refining our master-planned communities in the GTA, with Pinnacle One Yonge, Pinnacle Etobicoke and Pinnacle Uptown in Mississauga.
CL: What is your company doing to address the issues facing the homebuilding industry – namely, affordability and new home supply?
Kwok: Our first step is developing and creating transit-oriented communities that provide the opportunities to increase new home supply, as well as provide homeowners with the flexibility of no longer requiring a vehicle and all the associated costs.
Another focus for our company is to build larger units both in terms of square footage and the number of bedrooms. This might create higher initial costs but increases livability and reduces the need to move multiple times to get to your desired size, which reduces additional transaction costs.
CL: What more could the industry do to address these issues?
Kwok: There is a still a lack of supply to meet the current demand, so we still need to continue to work with municipalities to streamline the development process.
The industry also needs to provide supply that may be more size appropriate to the changing demographics in the GTA. This would require some incentives such as development charge reductions and changes to the financing model in the marketplace.
CL: What should prospective new-home buyers know about your company for 2020?
Kwok: In 2020, we are looking forward to launching the tallest residential tower in Canada – SkyTower at Pinnacle One Yonge, which will be 95 storeys.
CL: Why should prospective new-home buyers consider buying from your company this year?
Kwok: Location, master-planned communities and suite layouts. We have projects located in strategic, transit-oriented locations in Toronto, Etobicoke and Mississauga, and we are focused on providing master-planned communities for families to grow in. And when it comes to suite design, we are extremely proud of our layouts and have many family-friendly options.
Special Report: Outlook 2020
Outlook 2020 – Nick Carnicelli, President, Carriage Gate Homes