Despite a “very slow market,” in B.C.'s housing sector, Polygon Homes’ recent success with a new development may indicate signs of emerging life.

“We don’t normally talk about a lot of our projects, but the market has been so — well slow is maybe an understatement; it’s been such a challenge that when you have something that gets really strong market acceptance, you want to let people know about it,” Neil Chrystal, president at Polygon Homes, told RENX Homes.

The Vancouver-based developer recently had a great opening weekend of sales for the first release of homes within its Terrain project, which is located in Squamish, B.C.

“We introduced these homes at very aggressive prices on the low side. We were successful in writing 22 new sales on opening day,” he said.

Terrain and Polygon in Squamish

The community includes three- and four-bedroom townhomes, and Polygon used the pricing strategy to spark interest. “$988,000 was the entry point and if you were to go there today, your entry point would be $1,000,048 to $1,548,000,” Chrystal said.

The development is the second project for Polygon in the community, which sits astride the Sea-To-Sky Highway (Hwy. 99) about halfway between Vancouver and the resort town of Whistler. It is being built with an emphasis on what the local environment can provide for nature lovers.

“It was a 120-acre site originally. It was an old golf course and we returned 90 acres of the land back to park and a natural preserve area. It left us with 30 acres. All of the sites that we’ll be building out are going to be townhomes,” he said.

For those buyers looking to live near the wilderness, Terrain offers this.

“Alice Lake Provincial Park is behind the site, and literally 100 metres from the entrance to our site, is access to a vast trail network within the provincial park and Alice Lake. It’s the abundance of nature and adventure opportunities right at your doorstep that really makes it so unique.”

Floorplans range from 1,480 sq. ft. to 2,600 sq. ft. for three-bedroom models and 2,170 sq. ft. to 2,265 sq. ft. for four-bedroom models, according to the development’s website.

“Everyone’s complaining about how rotten the market is and I think an example of Terrain is, really, there’s some green shoots out there,” Chrystal said.

Polygon a "pure multifamily builder"

Polygon was founded in 1980 and originally developed office, industrial and some residential but by 1989, management decided to become a “pure multifamily builder,” according to Chrystal.

Since it was founded, Polygon has built more than 35,000 homes. But its recent success at the Terrain project also included something new for the firm.

“We did a home that had a small basement suite within a townhome, which would enable somebody to have a mortgage helper space in their basement," Chrystal said, "and those were pretty popular."

It offered nine homes with such an option and has sold four so far.

“With affordability constraints on many buyers, this gives them the opportunity to buy maybe a slightly bigger home and have that mortgage helper.”

Many challenges remain

While the company is pleased at its recent success, there are still many challenges facing the industry, according to Chrystal.

“I think a lot of home buyers continue to sit on the sidelines, waiting for a sign to know that it’s okay to get back into the housing market.”

However, by offering extras such as air conditioning in its townhomes (a feature that has not traditionally been offered due to the area's temperate climate), this offers great value “that you won’t get in a resale home, but at prices that are below the resale offerings."

In addition, recent government initiatives have provided some lift to the market.

“You’re seeing people take advantage of the GST exemption and where we’ve got the first-time home buyers, that’s a big win. It’s the biggest incentive, I think, that’s ever been offered by government in the home-buying field,” Chrystal said.

Interest rates “settling in” at around four per cent provides another boost for the industry. With buyers also “cashing in their RRSPs, with the first-time Home Buyers’ Plan and provincial rebates on the PST on housing, it all adds up to good timing and good value.”

Polygon has 22 projects under development

For Polygon, this positive news is being reflected by its current slate of 22 projects under construction in the greater Vancouver area, including a new project upcoming in Mission.

“That’s a 10,000-acre master-plan community. It’s the biggest one that we’ve ever done, possibly the biggest one that’s ever been done in greater Vancouver and so that will likely be (brought) to market early next year,” Chrystal said.

With all these projects on the go, there is some daylight ahead in the tunnel.

“We’re two years into a very slow market, and I think that this year is going to be the year that people re-enter,” he concluded.

“In the resale market, we’ve seen prices fall quite dramatically and if that’s 10 to 15 per cent over the last two years, I think we’re finding the bottom. And until we find the bottom, people won’t have confidence moving forward. I think this is the year that we find the bottom and move forward.”