Updated: April 2025  |  bremo.io financial guides

Kelowna New Construction Guide 2025

New construction is a significant portion of Kelowna's housing market. Pre-sale condos in downtown highrise towers, new townhouse developments throughout the city, and new single-family homes on the urban fringe all present opportunities — and unique risks. This guide covers everything buyers need to know about purchasing new construction in Kelowna in 2025.

Types of New Construction in Kelowna

Pre-Sale Condo (Highrise/Lowrise)

The largest share of new Kelowna construction. Buyers sign a purchase contract before the building is complete, typically paying deposits over time. Downtown Kelowna has seen the most activity, with multiple highrise towers delivering through 2024–2025.

New Townhouse Developments

Townhouse projects appear throughout Kelowna — in Rutland, Glenmore, Lake Country, and West Kelowna. These often offer better value per square foot than highrise condos, with more liveable layouts for families.

New Single-Family Homes

Available primarily in Black Mountain, Upper Mission, and Lake Country where land supply remains. Custom builds on bare land are also possible, though serviced lots are scarce and expensive.

GST on New Construction

New homes and condos are subject to 5% GST. The GST New Housing Rebate returns a portion of this tax if you are purchasing as a primary residence: the rebate is 36% of GST paid on homes up to $350,000, and phases out completely above $450,000. On a $600,000 Kelowna condo, full GST applies ($30,000) with no rebate available above $450,000. This is a significant additional cost first-time buyers often overlook.

PTT Exemption for New Construction

Newly built homes may qualify for a BC PTT exemption up to $1,100,000 (fair market value, including GST). The buyer must be a Canadian citizen or permanent resident purchasing as a principal residence. This exemption is extremely valuable for Kelowna buyers — potentially saving $18,000–$20,000 in PTT on a $1,000,000 new build.

Pre-Sale Deposit Structure

Typical pre-sale deposit requirements in Kelowna:

• Initial deposit at signing: 5% of purchase price
• Second deposit (often 120 days later): 5%
• Third deposit (sometimes): 5%
• Balance on completion: remaining purchase price

Deposits are typically held in trust by the developer's lawyer. BC's Real Estate Development Marketing Act (REDMA) provides protections, but buyers should understand that deposits can be at risk if a developer becomes insolvent.

Risks of Pre-Sale in Kelowna

• Completion delays — Most Kelowna highrise projects have delayed by 12–24 months from original estimates. Plan your housing needs accordingly.
• Assignment restrictions — Some developers restrict or charge fees for assignment (selling your contract before completion). Confirm assignment terms in your contract.
• Market value at completion — If prices fall significantly before your completion date, you may owe more on your mortgage than the home is worth. Lenders will re-appraise at completion.
• Strata governance — New strata corporations are still being established. Budget bylaws, depreciation reports, and strata governance take time to mature.

Working with a Realtor for New Construction

Developer sales centres represent the developer's interests. Using your own buyer's agent doesn't cost you extra (the developer's commission structure covers it) and gives you independent representation. An experienced buyer's agent can negotiate upgrades, review contracts, and advise on comparable re-sale values.