With several new condo developments planned or underway along Johnston Road and in the town centre, White Rock buyers are increasingly considering pre-sale purchases. Buying before a building is complete offers potential advantages, but it also carries risks that resale purchases do not. Here is a clear-eyed look at both sides.
How Pre-Sales Work in BC
A pre-sale purchase involves signing a contract to buy a unit in a building that has not yet been completed, sometimes before construction has even started. The developer files a disclosure statement with the BC Superintendent of Real Estate, and buyers have a seven-day rescission period after signing during which they can cancel without penalty. After that period expires, the contract becomes binding.
Deposits are typically structured in stages: an initial deposit of 5 to 10 percent at signing, with additional installments bringing the total to 15 to 20 percent over the following 6 to 18 months. These deposits are held in trust by the developer's lawyer or notary and are protected under the Real Estate Development Marketing Act. If the developer fails to complete the project, deposits are returned to buyers, though the process can take time.
Developer Track Records
Not all developers are equal, and in a market the size of White Rock, the track record of the builder matters enormously. Before committing to a pre-sale, research the developer's history. How many projects have they completed in the Lower Mainland? Were those projects delivered on time? Are there outstanding complaints with the Better Business Bureau, consumer forums, or the BC Real Estate Development Marketing Act registry?
Local developers with existing projects in White Rock and South Surrey have the advantage of familiarity with the city's permitting process, soil conditions, and construction environment. Out-of-town developers may bring fresh design ideas but could face longer approval timelines and unexpected challenges with the hillside terrain and municipal requirements.
The Rewards
Pre-sale buyers can benefit in several ways. The most obvious is price appreciation: if the market rises between the time you sign and the time the building completes, your unit may be worth more than you paid. In the 2015 to 2017 period, some White Rock pre-sale buyers saw gains of 20 to 30 percent before they even moved in.
You also get to choose your preferred unit in the building, select finishes and colour schemes within the developer's options, and move into a brand-new home with a 2-5-10 warranty backed by BC Housing. The building will have modern energy efficiency standards, current seismic engineering, and contemporary amenities that older White Rock buildings lack.
New buildings along Johnston Road and near Five Corners will also benefit from their location in the heart of the town centre, with walkable access to shops, restaurants, and transit. For buyers who value a central, low-maintenance lifestyle, these projects are compelling. For a walkability comparison, see our neighbourhood walkability guide.
The Risks
Market risk: If the market declines between contract and completion, your unit could be worth less than you agreed to pay. This happened to buyers who purchased in 2017-2018 and completed in 2019-2020. You are still legally obligated to complete the purchase at the contract price, and your lender will base the mortgage on the appraised value at completion, which could leave you needing to bring additional funds to close.
Completion delays: Construction timelines are estimates, not guarantees. Labour shortages, supply chain disruptions, weather, and permitting delays can push completion dates by months or even years. During the delay, your deposit is locked up, and you may need to extend interim housing arrangements at additional cost.
What you see is not what you get: Show homes and renderings are marketing tools. The finished product may differ from what you imagined. Views shown in marketing materials may be partially blocked by neighbouring buildings that were not yet constructed when the renderings were created. Floor plans that looked spacious on paper may feel tight in person.
Assignment restrictions: Many pre-sale contracts restrict your ability to sell or assign the contract before completion. If your circumstances change and you need to exit the purchase, you may have limited options. Some contracts allow assignment but charge a fee of 1 to 3 percent of the purchase price.
GST Implications
All new residential properties in Canada are subject to the 5 percent federal GST. On a $600,000 condo, that is $30,000. However, buyers who intend to live in the unit as their primary residence may qualify for the GST New Housing Rebate, which returns a portion of the tax on homes priced up to $450,000 (with a partial rebate on homes up to $550,000 in fair market value for the land and building combined). Above that threshold, the full GST applies.
Since most White Rock pre-sale condos are priced above $550,000, the majority of buyers will pay the full 5 percent GST with no rebate. This cost is sometimes included in the advertised price and sometimes added on top, so read the contract carefully. It represents a significant additional expense that does not apply to resale properties.
Due Diligence Checklist
- Review the disclosure statement with your lawyer before signing.
- Research the developer's completed projects and talk to owners in those buildings.
- Understand the full cost: purchase price, GST, closing costs, and any upgrade charges.
- Verify the estimated completion date and understand the contract's provisions for delays.
- Confirm parking and storage allocations, which are sometimes sold separately.
- Review the strata plan and projected monthly fees carefully.
- Ensure your financing will be available at the time of completion, not just at the time of signing.
Pre-sale purchasing can be an effective strategy for entering the White Rock market, particularly when new supply is expanding the choices available. But it requires careful analysis and a tolerance for uncertainty. For guidance on the mechanics of making any real estate offer in BC, see our article on subjects and conditions.