Unsold Condos and the Fire-Sale Math Developers Are Quietly Weighing
A condo tower that is finished but half empty usually has a price floor that was set years before the first wall went up. When a developer plans a project, they build what's called a pro-forma, which is the original financial plan covering land, labour, materials, financing and the profit the lender expects to see. The construction lender then sets "minimum release prices," the lowest price each unit can sell for without the bank's consent. So when you see completed units sitting unsold across British Columbia, the developer often isn't waiting for a better offer. In many cases, they simply aren't allowed to take a lower one.
That context matters if you're shopping for a home or an investment property in 2026. Sales have cooled nationally. CREA data shows activity down 6.7% year over year as of September, while the national average price in August sat at $668,219, up just 0.6% from a year earlier. In the multi-family market, buyers have been taking their time, and the pace at which new units sell has slowed in the larger BC centres.
Why developers rarely slash the sticker price
Holding unsold units, often called standing stock, is expensive. Construction loans typically carry rates well above what you'd pay on a residential mortgage. On top of that come property taxes, insurance and strata costs on every empty suite. For a large tower, those carrying costs add up quickly, month after month.
You might expect that pressure to force a fire sale. The math usually points the other way, for two reasons.
First, a deep price cut can wipe out the project's equity faster than holding does. If the developer can carry the units until rates settle or demand returns, the slow bleed may cost less than locking in a large loss today.
Second, there's the pre-sale ripple. Many buyers in the same building signed contracts years ago and haven't closed yet. If a developer sells an identical unit for $50,000 less, the appraiser valuing a pre-sale buyer's suite may use that lower sale as a comparable. That buyer's lender could then approve less than the contract price, leaving them to cover the gap. Developers know this, and they generally want to protect the buyers already committed to the building.
Where the discount actually shows up
Instead of cutting prices, developers are leaning on incentives. You may see offers like credit at closing, help with GST, a decorating allowance or strata fees covered for a period of time. These keep the official sale price intact while lowering your real cost.
When you compare buildings, add up the value of the incentive and treat it like a price reduction. Then ask how it's structured, because some incentives affect how your lender views the purchase price. It's worth checking with your broker before you sign.
What standing stock offers you
A finished, unsold unit can be a stronger position than a pre-sale. You can walk through the actual suite, check the view and the noise, and often move in within a month or two. The appraisal is based on today's market value, not a guess about what the unit will be worth three years from now.
This is especially helpful if you're self-employed. A pre-sale approval can sit for years while your business income rises and falls. With a completed building, you're applying for a standard mortgage commitment using your current financials, which is far easier to plan around.
Remember the costs that resale homes don't carry. New homes come with 5% GST, so build that into your budget and your mortgage plan from the start. Partial federal rebates exist at lower price points. On the provincial side, BC's Newly Built Home Exemption can reduce or eliminate property transfer tax for Canadian citizens and permanent residents on homes with a fair market value up to $1,100,000.
Developers also differ. A smaller local builder may have more room to negotiate than a large company answering to shareholders and big lenders. And while waiting for deeper cuts can feel sensible, slower sales today can mean fewer projects started, which tends to tighten supply a few years down the road.
If a finished condo has caught your eye, a short conversation can show you how the incentives, GST and your income picture fit together before you make an offer. I'm happy to walk through the numbers with you.
A condo tower that is finished but half empty usually has a price floor that was set years before the first wall went up. When a developer plans a project, they build what's called a pro-forma, which is the original financial plan covering land, labour, materials, financing and the profit the lender expects to see. The construction lender then sets "minimum release prices," the lowest price each unit can sell for without the bank's consent. So when you see completed units sitting unsold across British Columbia, the developer often isn't waiting for a better offer. In many cases, they simply aren't allowed to take a lower one.
That context matters if you're shopping for a home or an investment property in 2026. Sales have cooled nationally. CREA data shows activity down 6.7% year over year as of September, while the national average price in August sat at $668,219, up just 0.6% from a year earlier. In the multi-family market, buyers have been taking their time, and the pace at which new units sell has slowed in the larger BC centres.
Why developers rarely slash the sticker price
Holding unsold units, often called standing stock, is expensive. Construction loans typically carry rates well above what you'd pay on a residential mortgage. On top of that come property taxes, insurance and strata costs on every empty suite. For a large tower, those carrying costs add up quickly, month after month.
You might expect that pressure to force a fire sale. The math usually points the other way, for two reasons.
First, a deep price cut can wipe out the project's equity faster than holding does. If the developer can carry the units until rates settle or demand returns, the slow bleed may cost less than locking in a large loss today.
Second, there's the pre-sale ripple. Many buyers in the same building signed contracts years ago and haven't closed yet. If a developer sells an identical unit for $50,000 less, the appraiser valuing a pre-sale buyer's suite may use that lower sale as a comparable. That buyer's lender could then approve less than the contract price, leaving them to cover the gap. Developers know this, and they generally want to protect the buyers already committed to the building.
Where the discount actually shows up
Instead of cutting prices, developers are leaning on incentives. You may see offers like credit at closing, help with GST, a decorating allowance or strata fees covered for a period of time. These keep the official sale price intact while lowering your real cost.
When you compare buildings, add up the value of the incentive and treat it like a price reduction. Then ask how it's structured, because some incentives affect how your lender views the purchase price. It's worth checking with your broker before you sign.
What standing stock offers you
A finished, unsold unit can be a stronger position than a pre-sale. You can walk through the actual suite, check the view and the noise, and often move in within a month or two. The appraisal is based on today's market value, not a guess about what the unit will be worth three years from now.
This is especially helpful if you're self-employed. A pre-sale approval can sit for years while your business income rises and falls. With a completed building, you're applying for a standard mortgage commitment using your current financials, which is far easier to plan around.
Remember the costs that resale homes don't carry. New homes come with 5% GST, so build that into your budget and your mortgage plan from the start. Partial federal rebates exist at lower price points. On the provincial side, BC's Newly Built Home Exemption can reduce or eliminate property transfer tax for Canadian citizens and permanent residents on homes with a fair market value up to $1,100,000.
Developers also differ. A smaller local builder may have more room to negotiate than a large company answering to shareholders and big lenders. And while waiting for deeper cuts can feel sensible, slower sales today can mean fewer projects started, which tends to tighten supply a few years down the road.
If a finished condo has caught your eye, a short conversation can show you how the incentives, GST and your income picture fit together before you make an offer. I'm happy to walk through the numbers with you.
Read Next
Before the October Bank of Canada Decision: 5 Questions to Ask Your Lender
Extend, Adjust or Let It Lapse: Weighing Canada's Foreign Buyer Ban Before Year End
From 6.4% to 6.5%: How a Small Shift Affects Self-Employed Mortgage Approvals
What BC's Wills Variation Law Means When Disinherited Siblings Threaten Court