Harrison Peers · Sotheby's International Realty Canada
Pre-Sale Condos
in Vancouver
Vancouver's pre-sale condo market is one of the most complex buying environments in Canada — developer contracts run to 50+ pages, deposit structures are non-standard, assignment rights vary widely, and completion timelines shift. Harrison Peers guides buyers through every stage of the pre-sale process, from evaluating a developer's track record before you sign to coordinating mortgage financing as completion approaches.
What Makes Pre-Sales Different
How Pre-Sale Purchases Work
Unlike a resale purchase — where you inspect the property, negotiate, and take possession within 30–90 days — a pre-sale is a contract on a property that doesn't yet exist. You are purchasing based on floor plans, renderings, and a disclosure statement. Completion may be 2–4 years away. The contract terms, not MLS conventions, govern almost everything.
- Disclosure Statement Review: BC law requires developers to register a disclosure statement with the Real Estate Council before marketing. Harrison reviews the disclosure for material risks, restrictions, permitted changes, and developer obligations before any purchase.
- Deposit Structure: Pre-sales typically require 10–20% down in staged payments — commonly 5% on signing, 5% at a later milestone, and the remainder at completion. These deposits must be held in trust and are protected under REDMA.
- Assignment Clauses: If you may want to sell your contract before completion, the assignment rights must be explicitly reviewed before signing. Some developers prohibit assignments; others allow them with conditions.
- Completion Risk: Projects can be delayed by months or years. Mortgage pre-approvals expire. Market conditions may change. Harrison stress-tests your purchase against delay scenarios and connects buyers with mortgage brokers experienced in pre-sale completion financing.
- Developer Evaluation: Track record, financial strength, and build quality history matter more in a pre-sale than almost any other factor. Harrison evaluates every developer's completed project portfolio before recommending any pre-sale purchase.
- GST: New construction condos are subject to GST (5%). For properties under $450,000 there is a partial rebate; for properties above $450,000 the full 5% applies. This is a significant cost that buyers frequently overlook when budgeting.
- Property Transfer Tax: Newly built homes may qualify for the PTT New Housing Exemption up to $500,000 (partial exemption to $750,000). Harrison confirms eligibility for each purchase.
Where to Buy Pre-Sale in Vancouver
Active Pre-Sale Markets
Pre-sale activity in Metro Vancouver is concentrated in specific submarkets where land supply and development approvals align with demand. Harrison tracks active and upcoming projects across all these areas:
- Downtown Vancouver / Coal Harbour: High-rise luxury condos. Strong international buyer demand. Prices typically $1,500–$2,500+/sqft.
- Yaletown / False Creek North: Mid-to-high rise with waterfront and park views. Established neighbourhood, premium addresses.
- Brentwood / Burnaby: Transit-oriented development. Larger floor plans at lower price-per-sqft than Vancouver proper. Strong rental demand.
- Surrey / South Surrey: More affordable entry point. Larger format townhomes available pre-sale. Growing market driven by family demand.
- North Shore: Limited pre-sale supply. When projects launch, they move quickly — early access through developer relationships is valuable.
Frequently Asked Questions
What is a pre-sale condo?
A pre-sale is a unit purchased from a developer before construction completes. You sign a contract today, pay a staged deposit (typically 10–20%), and take possession 2–4 years later. Pre-sales offer early access and potential price appreciation over the construction period, but carry unique risks compared to resale purchases.
Can I assign (sell) my pre-sale contract before completion?
Assignment rights vary by contract — some developers permit assignments with a fee, others restrict them entirely. This must be confirmed before signing. Note that as of 2022, assignment profits are subject to GST and income tax. Harrison reviews all assignment clauses in pre-sale contracts.
What happens if the developer cancels the project?
Under BC's REDMA, deposits must be held in trust and returned with interest if a project is cancelled. However, you won't be compensated for opportunity cost or legal fees. Developer track record and financial strength are key factors Harrison evaluates before recommending any pre-sale.
Is a pre-sale a good investment in Vancouver?
Pre-sales offer leveraged appreciation if market values rise before completion, but the reverse is also true. They're not suitable for buyers needing certainty of closing timeline or who can't absorb a potential market decline over the 2–4 year construction window. Harrison will give you an honest assessment for your specific situation.
Interested in a pre-sale purchase?
Call Harrison to discuss current and upcoming pre-sale projects across Metro Vancouver — and to understand exactly what you're signing before you sign it.
604.315.7227 harrison@soldbypeers.com