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The next trend in luxury Canadian real estate? Multi-level ‘iceberg’ basements. – Maclean's

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Wealthy homeowners are digging deep, building underground karaoke lounges and golf simulators to get around building restrictions

(Illustration by Mike Ellis)

(Illustration by Mike Ellis)

In Hoggs Hollow, an upscale Toronto neighbourhood, people love their trees. In November, many lawns bore a sign reading, “Stop the Chop,” a campaign to save a 250-year-old sugar maple. The signs remain, but the plea failed. The massive tree had stood behind a house that a family bought with plans to demolish it and build a new home. The buyers ignored a city forestry report and cut down the maple to accommodate a two-level basement whose area is nearly twice the above-ground footprint of their planned new house. Drawings show the basement will feature a karaoke lounge, a card table, a billiard room, a golf simulator, a stage, a basketball court, a spa featuring a steam room and sauna, an exercise room, a five-car garage, a kids’ lounge, a mud room, two bathrooms and a nannys’ lounge, plus “Nanny Room #1” and “Nanny Room #2.”

Below-grade mansions are not new. In the mid-2000s, very wealthy residents of the London boroughs of Chelsea, Mayfair, Knightsbridge and Westminster pioneered deep basements to make houses much bigger than rules permitted. Locals dubbed them “iceberg houses,” but after hundreds of approvals, London councils restricted the size of these subterranean pleasure dens. So far, big Canadian cities have no rules governing iceberg houses, and several of these huge caves already exist under homes in Vancouver and Toronto. Unless building departments draw up some rules, they may come soon to a street near you.

Locals in Hoggs Hollow fear for the future of the tree canopy, which makes the area resemble a forest with some houses in it. “We worked our asses off to move here, because it’s so green,” said Shannon Rancourt, sitting in her living room four doors from the proposed home. “Now it’s all being toppled.” Rancourt and a neighbour, Laura Lamarche, spearheaded the lawn-sign campaign; another sign reads, “Save our tree canopy! Stop Iceberg Houses.” They fear tree removals and huge basements could cause flooding in this valley. (When reached by Maclean’s, Minqiang Jian, an owner of the Hoggs Hollow house, said he plans to build “a normal property,” adding: “It’s no iceberger.” But as of this writing, no revisions to his building permit had been filed with the city.)

READ: No water in winter. No septic field. For $489,000 the ‘Tom Selleck house’ can be yours.

The iceberg house trend has reached Vancouver, says Matthew Soules, an architect and professor at the University of British Columbia. A 1950s home near UBC avoided the wrecking ball a few years ago because new owners were keen to preserve its mid-century-modern design. Instead, they dug a basement beside the house that is many times larger than the dwelling itself. Soules is aware of another iceberg house in West Vancouver’s Dundarave area. East of Vancouver, the Abbotsford News reported on a 10,000-sq.-ft. home whose vast underground garage stores vintage luxury cars and military vehicles.

These basements serve very particular purposes, Soules writes in his new book, Icebergs, Zombies and the Ultra Thin. Above ground, these houses offer what most do: places to cook, eat and sleep, while the underground portions become “personal Disneylands . . . an extended territory of leisure, entertainment and luxury-goods storage and display.”

Paul Miklas, a builder who specializes in very large houses, is excited about the opportunities of iceberg homes. He built one oversized basement on a 35,000-sq.-ft. mansion in Toronto’s exclusive Bridle Path area. Due to city zoning rules, a golf simulator included in his initial design would have, as he puts it, “crashed right into the view” from the pool. The solution: put the golf simulator underground. He added a below-ground wine cellar, theatre and gym.

With forethought, Miklas says, builders can save big trees and still dig huge basements: “If you are willing to put the money into a subterranean structure, figure out a way to accommodate the life of the tree.” With iceberg homes, he notes, “you don’t need a two-acre lot. Now you can blow the thing up to 12,000 sq. ft. underground. You can create these beautiful, massive homes, and it’s easier on the upkeep because there is less exposure to the elements.” In the spring he will break ground on another iceberg, with a theatre and a large swimming pool, both underground.

Soules says fear of iceberg houses extends beyond worries about trees. “These wealthy people are going to live underground and challenge our concepts of domesticity. It triggers our worries and anxieties and discomforts with growing wealth inequality in our cultures.”

Current zoning in Toronto allows home builders to dig as wide and deep as they want. But so far, the city hasn’t seen the sort of problems that have emerged in London, where excavations for iceberg homes have caused the foundations of neighbouring buildings to shift. In any case, says Kyle Knoeck, Toronto’s acting director of zoning, “This has never been a form of proposal that we have seen very often.”

Still, city council recently instructed planners to report back on ways to control the trend. Right now, says Councillor Jaye Robinson, “Things are done in a willy-nilly way. They approve now and ask questions later. If you lived beside one of these things, you wouldn’t be very happy if your foundations started cracking.”

Soules asks a more fundamental question about the trend to subterranean home theatres and golf simulators. “Before, you would go to the actual theatre and maybe fall in love with someone you met in the lobby,” he says. “Underground golf simulators? What happened to going to play golf on a golf course, and interacting with actual human beings?”


This article appears in print in the February 2022 issue of Maclean’s magazine with the headline, “What lies beneath.” Subscribe to the monthly print magazine here.

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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