Presale vs resale condo in Metro Vancouver: which makes more sense for a first-time buyer?

1 day ago

5 min read

Buy resale if you need to move in within a year or two. A presale can cut your taxes by up to $50,000 in GST plus the BC property transfer tax, but you wait years for the keys. In Metrotown and Brentwood, 2 bedroom condos built in 2021 or later sold for a median of $715,000 between March 14 and September 10, 2026.

What is the difference between a presale and a resale condo?

A presale is a new condo you buy from a developer before the building is finished. A resale is a completed home that you buy through a regular MLS listing.

With a presale you sign now, pay deposits over time and receive the keys at completion, which can be years away. With a resale you see the actual unit, read the strata documents and close on a date you negotiate.

How much tax can a first-time buyer save on a presale?

Two programs apply to a new condo that you buy to live in.

Federal GST rebate. New homes carry 5% GST. A first-time buyer can recover all of it on a home valued up to $1,000,000, to a maximum of $50,000. The rebate phases out between $1,000,000 and $1,500,000 and is gone at $1,500,000. You must be 18 or older, a Canadian citizen or permanent resident, and not have lived in a home you or your spouse owned in the current year or the 4 years before. The agreement must be signed on or after March 20, 2025 and before 2031, and you must be the first person to live in the unit.
BC newly built home exemption. The property transfer tax is waived in full on a new home worth $1,100,000 or less, and phases out up to $1,150,000. You must be a citizen or permanent resident, move in within 92 days of registration and live there for the first year.

Here is what that looks like on a $750,000 condo. On a resale, the BC first-time buyer exemption covers $8,000 of the $13,000 transfer tax, so you pay $5,000. On a $750,000 presale, you pay no transfer tax under the newly built home exemption. The 5% GST on that price is $37,500, and the rebate can recover all of it. The builder can credit it at closing. Otherwise you apply to the CRA, usually within 2 years of taking ownership.

I covered the resale side in the BC first-time home buyer transfer tax exemption.

What do you get for the money in a nearly new resale?

MLS has no presale prices, so I can't compare a presale directly. It does show what completed condos nearby sold for, by building age.

I used 2 bedroom condos in Metrotown and Brentwood Park with a last asking price from $499,000 to $800,000. That left 194 firm sales between March 14 and September 10, 2026.

Built 2021 or later (58 sales): median $715,000, 764 square feet, $933 per square foot, 21 days on market.
Built 2014 to 2020 (63 sales): median $720,000, 796 square feet, $880 per square foot, 38 days.
Built 2013 or earlier (73 sales): median $650,000, 946 square feet, $704 per square foot, 28 days.

The older group spans buildings from 1978 to 2013. A buyer in that group paid about $65,000 less than a buyer in a 2021 or later building and got roughly 180 more square feet.

The price cap leaves out newer, pricier units, and MLS doesn't say whether a 2021 or later unit was first sold by a developer or by an original owner. Treat it as the cost of nearly new resale. It says nothing about presale prices.

When a developer quotes you a presale price, compare its price per square foot with these numbers and with recent sales in the same building area.

What are the risks of buying a presale in BC?

Most of them come from the wait.

You can cancel for 7 days. Under the Real Estate Development Marketing Act, you can rescind within 7 days after the later of signing and giving the developer written acknowledgment that you had a chance to read the disclosure statement. After that you are committed. Read the disclosure statement before you sign, since it describes the project and the deadlines the developer has to meet.
The project can change or stall. BCFSA's consumer guide says a contract may end if completion is delayed beyond the date in the contract and neither side agrees to an extension. If a development doesn't proceed, buyers are usually entitled to their deposit back.
Assignment may not be allowed. If your life changes before completion, you might not be able to sell your contract. Many contracts forbid assignment or require the developer's consent, and some charge a fee. BCFSA says the developer can refuse even when you have a buyer.
Selling the contract early is taxed. The BC home flipping tax applies to profit on a presale contract sold within 730 days. The rate is 20% in the first 365 days and falls to zero by day 730.
Your mortgage is settled late. You borrow at completion, years after you sign. Your income, rates and lender rules can all differ by then. I think this is the biggest unknown for a first-time buyer.

For a resale, the equivalent risk is the strata. Read the strata documents before you remove subjects.

When does each one make more sense?

I'd choose a presale if you can wait, your income is steady, you can stay in your current place until completion, and the price per square foot is in line with nearby completed condos. The GST rebate and the transfer tax exemption together are real money on a first purchase, and a new building has no deferred maintenance.

I'd choose a resale if you need a home soon, want to see exactly what you're buying, or want more space for the money. In Metrotown and Brentwood, the 2013-or-earlier group offered the most floor area per dollar. For a side-by-side of the two areas, see Metrotown vs Brentwood.

I'm Barton Lui, a REALTOR® with Real Broker. My read is that the move-in date decides this for most first-time buyers. If you need a home within 2 years, a presale doesn't fit.

Frequently asked questions

Is a presale cheaper than a resale in BC?

Not necessarily. The tax breaks help, but I don't have verified presale prices to compare. Ask for the price per square foot and compare it with recent sales of completed condos nearby.

Do first-time buyers pay GST on a new condo in BC?

New homes carry 5% GST. A first-time buyer can recover all of it on a home valued up to $1,000,000, to a maximum of $50,000, if the conditions are met. The rebate shrinks to zero between $1,000,000 and $1,500,000.

Can I cancel a presale contract in BC?

Yes, within 7 days after the later of signing and giving the developer your written acknowledgment that you had a chance to read the disclosure statement. After that you are committed to the contract.

Can I sell my presale contract before completion?

Only if the contract allows it, usually with the developer's consent and sometimes a fee. If you sell within 730 days of signing, the BC home flipping tax can apply to your profit.

Barton Lui is a REALTOR® with Real Broker in Vancouver. He works mostly with first-time buyers across Metro Vancouver and speaks English, Cantonese and Mandarin.

Thinking about a presale or a resale? Book a consultation.

Reach him at 604-715-5568 or barton@bartonrealtor.com.