Vancouver’s Presale Condo Crisis: Buyers Trapped, Developers Panicking

By Troy Tyrell | WBN News Vancouver | June 25, 2025
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VANCOUVER, BC. What was once a golden ticket to equity-building dreams in the Lower Mainland has turned into a financial nightmare for thousands of homebuyers. Vancouver’s presale condo market, once red hot, is now experiencing a chilling meltdown, leaving developers scrambling and investors underwater.

🔥 Presale Buyers Underwater

Between 2021 and 2023, thousands of hopeful homeowners rushed to lock in presale condos, betting on future value and a red-hot real estate market. But as of mid-2025, many of those units are now worth less than the contracted purchase price, putting buyers in a bind.

When appraisals come in below expectation, mortgage lenders only cover the lower valuation. This forces buyers to come up with tens or even hundreds of thousands of dollars in additional capital just to close the deal.

"We were expecting to walk into equity," says Amy Tran, a first-time buyer who purchased a one-bedroom in Burnaby. "Instead, the bank’s appraisal was $100K less than what we signed for. We had to scramble for a family loan just to avoid losing our deposit."

🏗️ Inventory Pileup and Investor Exodus

Recent reports estimate that over 4,800 units across Metro Vancouver are either unsold or unoccupied, including 2,500 completed condos currently sitting empty. Developers, once confidently marketing to overseas investors, are now slashing prices, offering interior upgrades, and even cancelling future launches.

Perhaps most telling is the investor pullback: investor participation in new presales has plummeted from nearly 50% in 2021–22 to just 7% in 2025, according to data from Zonda Urban and MLA Canada.

📉 Developer Desperation Sets In

Multiple projects are being quietly shelved, as developers contend with ballooning construction costs and decreasing consumer confidence.

"We're seeing developers offer $25,000 in incentives just to get people to complete," said Kevin Lum, a real estate analyst in Vancouver. "Some are letting buyers walk away with reduced penalties; it’s either that or hold a unit indefinitely."

🚨 Who’s at Risk?

Those most at risk are buyers with 5–10% down payments who were pre-approved during low-interest rate periods. Now, faced with a higher stress test and lower unit values, some are defaulting entirely, triggering legal battles and credit consequences.

"This is the darker side of speculation," Lum adds. "Presales were sold as safe, but they were speculative investments packaged as guaranteed homes."

💬 Policy Watch: Will the Province Step In?

Industry insiders are calling for new provincial regulations around presales, including mandatory price adjustment clauses, enhanced buyer protection on deposits, and stricter enforcement of project timelines.

Housing Minister Ravi Kahlon acknowledged the challenges in a statement last week, saying: “We are closely monitoring the presale market and are open to interventions that protect buyers and increase transparency.”

🧠 What Buyers Should Know

Prospective buyers should ask their own Realtor the following before entering a presale:

• What happens if the market drops before completion?
• Can I assign my contract if I can’t close?
• What protections do I have if the developer delays or cancels?

🏁 The Bottom Line

Vancouver’s presale condo market is no longer a guaranteed path to prosperity, it’s a cautionary tale in speculative risk. As thousands of buyers scramble to find financing or salvage deposits, the ripple effect is being felt across the city’s real estate and financial sectors.

And while developers, banks, and policymakers debate next steps, it’s the average Vancouverite, dreaming of home ownership, left footing the bill.

For more breaking real estate coverage, visit WBN Vancouver or follow us @WBN_News.

📍 Reporting from Downtown Vancouver, where glass towers rise, but buyers’ hopes may be falling.

By Troy Tyrell, Founder of Tsquared Personal Training
WBN Contributor | Community Builder | Mountain Biker | Advocate for Local Business & Fitness
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TAGS: #Vancouver Real Estate #WBN News #Presale Condo Crisis #Negative Equity #Metro Vancouver Housing #Troy Tyrell Reports #Housing Market Update

Editor: Elke Porter