What Are Real Estate Presales? A Complete Guide for Vancouver Buyers

Vancouver’s real estate market is one of the most dynamic and expensive in North America. Whether you're a first-time homebuyer or an investor, you've likely come across the term "presale." But what exactly does it mean, and how does it work in the context of Vancouver's real estate landscape?

In this guide, we'll break down everything you need to know about real estate presales—how they work, their advantages and risks, how to buy one, and whether they're a good investment in today’s market.

What Is a Real Estate Presale?

A real estate presale refers to purchasing a condominium or townhouse before construction is completed. In some cases, buyers sign a contract even before construction begins. This means you are committing to buy a property based on architectural plans, developer promises, and marketing materials rather than seeing a finished home.

How Do Presales Work?

Developers Market the Project Early
Before construction begins, developers start selling units to buyers, often using presentation centers with model suites, virtual renderings, and brochures.
Buyers Place a Deposit
Buyers secure their unit by putting down a deposit (typically 15–25% of the purchase price) over a scheduled period.
Construction Begins
The project moves forward, often taking 2 to 5 years to complete.
Completion and Closing
Once construction is complete, buyers officially take ownership, securing a mortgage if necessary.

Advantages of Buying a Presale in Vancouver

Presales have become increasingly popular in Vancouver, offering several benefits:

1. Potential Price Appreciation

Vancouver’s real estate prices have historically trended upward.
By buying a unit today and completing in 3–5 years, you could benefit from property appreciation without needing a mortgage upfront.

2. Lower Initial Investment

The deposit is paid in stages rather than upfront.
This allows buyers to lock in a property at today’s price while saving for future payments.

3. Customization Options

Many developers let buyers choose finishes such as flooring, cabinetry, and countertops.
Some projects allow minor layout modifications.

4. Warranty and New Home Benefits

All new presales come with a 2-5-10 home warranty, covering defects for up to 10 years.
New buildings are more energy-efficient and require less maintenance.

Risks and Considerations

While presales can be a great opportunity, they also come with risks and uncertainties.

1. Market Fluctuations

If property values decline, your presale unit may be worth less than what you agreed to pay.
This could create financing challenges when you seek a mortgage.

2. Construction Delays

Delays are common due to permitting issues, labor shortages, or supply chain disruptions.
Buyers may need to adjust their move-in timelines accordingly.

3. Developer Bankruptcy

If a developer goes bankrupt before completion, buyers could face legal battles to recover deposits.

4. Strict Mortgage Requirements

Mortgage approvals happen closer to completion rather than at purchase.
If interest rates rise, buyers may qualify for less mortgage financing than expected.

5. Limited Resale Options (Assignment Challenges)

If your financial situation changes, you may want to sell your presale contract before completion.
This process is called an assignment sale, but many projects restrict assignments or charge fees.

How to Buy a Presale in Vancouver

If you're considering a presale, follow these steps to make an informed decision.

1. Research the Developer

Look at their past projects, completion history, and reviews.
Notable Vancouver developers include:
- Onni Group
- Concord Pacific
- Wesgroup Properties

2. Understand the Deposit Structure

Most presales require a deposit of 15–25% over multiple payments.
Example:
- First deposit: 5% at contract signing
- Second deposit: 5% in 6 months
- Final deposit: 10% within a year

3. Review the Disclosure Statement

Developers must provide a Disclosure Statement, detailing:
- Project timeline
- Unit specifications
- Potential risks

4. Get Pre-Qualified for a Mortgage

Even though your mortgage will be finalized at completion, getting pre-approved gives you a financial roadmap.

5. Work With a Presale Realtor

A knowledgeable real estate agent can help you navigate developer contracts and find the best deals.

Vancouver’s Current Presale Market (2025 Update)

Market Overview

Vancouver's presale market has seen a shift in recent years due to changing interest rates and buyer demand.

According to MLA Canada, Metro Vancouver is expected to see 125 presale project launches in 2025.
However, buyer hesitation remains, with presale absorption rates hitting just 10% in late 2024.

Notable Presale Projects in 2025

1. Garden 11 (Vancouver East)

Developer: AREE Developments
Type: Condos
Location: Grandview-Woodland
Status: Selling now

2. Ash 28 (Vancouver West)

Developer: Terra Blanka & Lotus Living
Type: Condos & Townhomes
Location: South Cambie
Status: Selling now

3. Cambie Gardens (South Cambie)

Developer: Onni Group
Type: Condos & Townhomes
Status: Under construction

Is Now a Good Time to Buy a Presale in Vancouver?

The decision to buy a presale depends on your financial situation and market conditions.

If interest rates remain stable and construction timelines improve, presales could be a good long-term investment.
If you’re looking for immediate occupancy, resale condos may be a better option.

Common Questions About Presales

Are Presales More Affordable Than Resale Condos?

Not necessarily. While presales allow buyers to spread payments over time, they often sell at premium prices compared to existing condos.

What Happens If I Can’t Get a Mortgage at Completion?

You may lose your deposit if you can’t secure financing.
Some buyers try to sell their contract through an assignment sale.

Can Foreign Buyers Purchase Presales in Vancouver?

As of 2023, foreign buyers are restricted from purchasing residential properties in Canada, including presales.

Do I Pay Property Transfer Tax on a Presale?

Yes, unless you qualify for exemptions, such as the First-Time Home Buyers’ Program.

Final Thoughts

Presales can be an exciting investment or home-buying opportunity, but they come with unique risks. If you’re considering a presale in Vancouver, make sure to:

Research developers and project history
Understand financing options and deposit structures
Work with a knowledgeable presale realtor

By taking these steps, you can make an informed decision and potentially secure a great home at today’s prices.

Interested in Vancouver Presales?

📩 Contact a presale specialist today to get personalized recommendations on upcoming projects.