Pre-sale condos in Burnaby.
The honest version.
Presale condos are marketed heavily in Burnaby — there are dozens of active developments in Metrotown, Brentwood, Edmonds, and Lougheed at any given time. The pitch is compelling: lock in today's price, choose your finishes, get a brand-new unit. What the marketing doesn't lead with is the set of risks that two recent Burnaby examples made very visible.
In January 2025, the Eclipse tower in Burnaby — a presale project — was forced into creditor protection. Dozens of buyers went to court to invalidate their contracts. The Siena at the Heights project went into court-ordered receivership with over $5 million in presale deposits at risk. These are not hypothetical risks; they happened here, to Burnaby buyers, in the last 18 months.
That doesn't mean presales are always wrong. It means they need to be evaluated seriously.
What a presale actually is
A presale is a purchase contract for a home that does not yet exist. You pay a deposit — typically 10–20% in stages over the construction period — and take possession years later when the building completes. The deposit is supposed to be held in trust under BC's Real Estate Development Marketing Act. The purchase price is fixed at signing; whether the market goes up or down in the interim, you are locked in.
The five risks — ranked
Developer insolvency
High riskIf the developer enters creditor protection or receivership before completion, your deposit may be tied up for years and the project may never finish. Two recent Burnaby examples: the Eclipse tower went into creditor protection in January 2025; Siena at the Heights went into receivership with over $5M in presale deposits at risk. BC's New Home Buyer Protection Act requires developers to hold deposits in trust, but recovery in insolvency is not guaranteed and can take years.
Market value decline at completion
High riskYou are locked into the presale price you paid — typically 3 to 5 years before you take possession. If the market falls in that window, you could owe more at completion than the unit is then worth. In 2026, Burnaby condos are already down about 7–8% from the 2022 peak. A buyer who locked in near the top is sitting on a paper loss before they take possession.
Construction delays
Medium riskDelays of 1–2 years beyond the projected completion date are common. That stretches your carrying cost (paying rent while your deposit earns nothing), and your financing pre-approval from the presale date is likely expired by completion. You will need to re-qualify at whatever rates exist at completion.
Product mismatch
Medium riskWhat you see in renderings and a show suite is not necessarily what you will receive. Floor plans can change due to structural requirements. Views can be blocked by adjacent developments approved after your purchase. Finishes can be substituted. You are buying a promise, not a physical product.
Financing gap at completion
Medium riskMost banks will not provide a formal mortgage commitment years in advance. Some lenders offer long-term presale mortgage pre-approvals, but these are uncommon and not always honoured. If rates are significantly higher at completion or your financial circumstances change, you may face a shortfall — forced to sell other assets or complete at unfavourable terms.
GST vs. PTT — the new-build tax trade-off
Resale homes attract BC property transfer tax but no GST. New builds are the opposite: 5% GST applies, but there is no PTT (though confirm this with your notary — there are situations where PTT applies on a new build assignment). The federal new housing rebate returns a portion of the GST on homes purchased as a primary residence, but the rebate phases out at higher purchase prices.
If you qualify as a first-time buyer, the BC PTT exemption on a resale home under $835k saves you roughly $13,700. For details on both sides of the calculation, read the first-time buyer programs guide. For presale purchases, use the rescission fee calculator to understand the cost of exercising your right to cancel.
How to vet a developer before you buy
The risks above are real, but most of them are manageable if you go in with the right information. A financially strong developer with a completed track record and verified construction financing is a fundamentally different counterparty than a first-project developer with no institutional backing. Here is what to check:
- →BC Housing Licensing & Consumer Services — confirm the developer is licensed
- →Developer track record — how many projects have they completed on time? Any insolvencies?
- →Construction financing — is the project Altus-certified or verified by a major lender (evidence of construction draw financing)?
- →Disclosure Statement — read every page; the developer is required to disclose all material facts
- →Rescission right — you have 7 business days to cancel after receiving the Disclosure Statement in BC
- →Deposit trust account — confirm deposits are held in trust per the Real Estate Development Marketing Act
- →Completion date range — understand the earliest and latest completion dates, and what happens if neither is met
When presale still makes sense in 2026
For a buyer who has a long horizon, doesn't need to move soon, and has identified a financially solid developer with confirmed construction financing in a supply- constrained location, a presale can still be a reasonable purchase. The 30-year amortization available on new-build insured mortgages is a real benefit. The ability to choose your finishes and buy at today's price in an appreciating pocket matters.
In 2026's market, though, resale condos offer meaningful value: prices down 7–8% from peak, more inventory to choose from, and the ability to inspect, review strata documents, and get a firm mortgage commitment before removing subjects. For most first-time buyers, that is a more defensible position than locking in a presale and waiting 3–5 years.
The decision comes down to your risk tolerance, your timeline, and the specific developer in question. It is worth a real conversation before signing anything.
Key Takeaways
- 01.Developer insolvency is the highest-stakes risk — two Burnaby examples in 2024–25 show it is not hypothetical. Verify construction financing before signing.
- 02.You are locked in at the presale price regardless of market movement. In a falling market, you may complete at a loss.
- 03.Use your 7-business-day rescission right. Review the Disclosure Statement with a lawyer before that window closes.
- 04.New builds attract GST but no PTT; resales attract PTT but no GST. Factor both into your total cost comparison.
- 05.For most first-time buyers in 2026, a well-chosen resale is lower-risk than a presale. Presale makes more sense for buyers with a long horizon and high risk tolerance buying from a financially verified developer.
This guide is general information as of June 2026. Legal rights under the Real Estate Development Marketing Act and deposit trust rules are subject to legislative change — verify current terms with a BC real estate lawyer before signing a presale contract.
Frequently Asked Questions
Are pre-sale condos worth it in Burnaby in 2026?
It depends on the developer, the project, and your risk tolerance. In 2026, resale condos are trading at meaningful discounts from the 2022 peak — often better value than presales locked in at higher prices. A presale from a financially solid developer in a supply-constrained location can still make sense, but the risk-adjusted return needs to justify locking capital for 3–5 years. For most first-timers, a well-chosen resale is lower risk.
What is BC's presale rescission right?
Under BC's Real Estate Development Marketing Act, you have 7 business days from receiving the disclosure statement to cancel a presale contract and receive your deposit back in full. This right applies only at initial purchase, not at resale. It gives you time to review the disclosure statement with a lawyer before committing. Use it.
How is GST handled on a new-build condo in Burnaby?
New homes in Canada are subject to 5% GST, which resale homes are not. The federal new housing rebate returns a portion of that GST on homes purchased as a primary residence — the rebate amount phases out as purchase price increases. The rebate is often applied by the developer and reflected in the quoted purchase price, but confirm whether GST is included or extra before comparing to resale prices.
What does a presale Disclosure Statement need to include?
Under BC's Real Estate Development Marketing Act, the Disclosure Statement must disclose all material facts about the project: the developer's identity and financial position, the project timeline, material risks, deposit and completion terms, and any known encumbrances or restrictions. It must be filed with BC Financial Services Authority before marketing. Read it fully, and have a real estate lawyer review it before signing.
Can I sell my presale assignment before completion?
Most developers allow assignment sales — where you sell your purchase contract to another buyer before the project completes — but this is governed by what the purchase contract says. Some contracts prohibit assignment entirely; others allow it with the developer's consent and a fee. If assignment flexibility matters to you, read the contract clause before you purchase.
Is a pre-sale condo or a resale condo better for a first-time buyer in Burnaby?
For most first-time buyers, a resale is lower-risk. You can inspect the actual unit, review real strata documents, use a home inspection, and get a proper mortgage commitment before removing subjects. The tax treatment also differs: resale attracts PTT (exempt if you qualify as a first-timer) but no GST; a new build attracts GST but no PTT. A presale offers the GST new-build rebate and 30-year amortization eligibility, but at the cost of years of waiting and construction risk.
Sources & References
- Presale buyers left in limbo after Burnaby development goes bust — CBC News
- Dozens of pre-sale purchasers at Eclipse tower claim contracts invalid — CBC News
- Real Estate Development Marketing Act — BC presale regulations — Province of British Columbia
- BC Housing Licensing & Consumer Services — developer registry — BC Housing