April 6, 2025

In this episode, Marko Gelo and Uzair Muhammad (of Real Broker) discuss the inner workings of pre-sale condos in Vancouver and Fraser Valley. Here’s a summary of the discussion:

Key Insights on Pre-Sale Condos and the Market Landscape

Due Diligence Before Buying a Pre-Sale Condo

Three essential questions to ask any realtor before proceeding:

• How many pre-construction units have you sold?
• How many assignments have you (successfully) completed?
• Have you personally purchased a pre-sale condo before?
• Agents who have completed assignments and also invested themselves bring valuable real-world experience, particularly in navigating unforeseen complications.

Assignments Are Complicated

• Assignments are not guaranteed, even when allowed by the developer; approval is at the developer’s sole discretion.
• Many agents avoid dealing with assignments due to complexity and low compensation
• Developers may restrict assignments to protect their own unsold inventory.
• Some projects outright prohibit assignments, leaving buyers with no exit if they cannot complete.
• It’s essential to understand a project’s assignment rules and the agent’s ability to handle them before signing a purchase contract.

Current Inventory Trends in Pre-Sale Condos

• Developers are largely maintaining prices by reducing unit size, rather than lowering price per square foot. For example, a unit that was 575 sq ft two years ago might now be 500 sq ft at the same price.
• The illusion of affordability is created by smaller units rather than actual price reductions.
• Studios, especially in suburban markets like the Fraser Valley without parking or SkyTrain access, are considered poor investments.
• There’s been a marketing push for “junior” units:
• Junior 1-bedroom = studio with a partition.
• Junior 2 or 3-bedroom = standard unit with small den or minimal third room labeled as a bedroom.
• Developers avoid building larger units (true 3-bedrooms) near transit hubs due to price sensitivity and investor demand.

Macro Market Considerations

• Much of the recent supply was built for investors, not end-users — especially noticeable in Vancouver.
• Airbnb and short-term rental trends have shifted, impacting investor demand.
• There’s a rising conversation around the “missing middle,” but actual product delivery (2-3 bedroom units suitable for families) remains limited and inconsistent.

Strategic Takeaways for Buyers

• Not all pre-sale projects are created equal — understanding contract terms is crucial.
• Buyers should work with professionals who have hands-on experience in the pre-sale space.
• Square footage, layout, transit proximity, and resale strategy must be analyzed holistically — not just price.
• Consider future flexibility (assignments, rentals) when evaluating any pre-sale purchase.

For a deeper dive into their discussion, tune into the episode in the link above! 

Call Uzair Muhammad at 778-231-3592 for his expert real estate advice and service.

Download my amazing Mortgage App…it’s loaded with calculators and tons of useful information!

Don’t want to miss out on the next blog post?  Click Here to have future issues emailed directly to your inbox!

CONNECT WITH MARKO: 

604-800-9593 cell/text | 403-606-3751 cell/text | Schedule A Call | WhatsApp | Marko’s App |  mortgages@markogelo.ca