Should I buy pre-construction or resale in Markham right now?For most buyers in fall 2026, resale offers more certainty and better value per square foot. Urbanation reported in July 2026 that completed, unsold new condos across the Greater Toronto and Hamilton Area were asking an average of $1,186 per square foot, while resale units in buildings registered in the last three years averaged $830. Resale gives you a finished home, a known price, an appraisal before you firm up and rent from day one. Pre-construction can still suit buyers who want a new home, a long deposit schedule or Ontario’s enhanced HST relief, but it comes with closing adjustments, occupancy fees and appraisal risk years later.
Pre-construction was the default choice for many Markham buyers and investors for years. Prices rose while buildings went up, and buyers often closed with equity already built in. That pattern has changed.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, compares new and resale options on the full cost per square foot, including closing adjustments and fees, so buyers can see the real difference rather than the advertised one.
The price gap today
| Greater Toronto and Hamilton Area, Q2 2026 | Average price per square foot |
|---|---|
| Completed, unsold new condos (asking) | $1,186 |
| Resale units in projects registered in the last 3 years | $830 |
Urbanation, July 20, 2026. Urbanation also reported a record 5,001 completed but unsold new condo units held by developers, up 68% from a year earlier.
On a 700-square-foot unit, that gap works out to roughly $249,000 at those averages. Individual buildings vary widely, but the direction is clear: newer resale units often cost far less per square foot than brand-new ones.
Costs that come with pre-construction
- Closing adjustments: Agreements can pass certain costs to buyers on closing, such as utility connections, Tarion enrolment and increases in development charges or levies. Look for a cap on these adjustments in Schedule A before you sign.
- Development charges: In Markham, City, Region and school board charges on a new apartment were about $79,849 for units under 700 square feet and $115,642 for larger units as of July 1, 2026. These are built into the builder’s price, and some agreements pass on later increases.
- Interim occupancy fees: If you move in before the building is registered, you pay a monthly occupancy fee, typically made up of interest on the unpaid balance, estimated property tax and the condo fee. None of it reduces your price.
- Appraisal risk: If the unit appraises below your price at closing, your lender lends on the lower value and you cover the gap in cash.
On the plus side, Ontario’s enhanced HST relief applies to eligible new homes bought under agreements signed between April 1, 2026 and March 31, 2027, including up to $80,000 back on the provincial portion for eligible buyers. Your lawyer can confirm whether you qualify.
Weighing a new build against resale?
Michael John Lau can compare the full cost per square foot of the units you are considering, including adjustments, fees and rent potential.
Book a buyer consultationSearch Markham homesPrefer to talk? Call the Kaizen Real Estate Team at (647) 370-8885.
Assignment sales: the exit that may not be there
Some pre-construction buyers plan to sell their contract, called an assignment, before closing. Before relying on that plan:
- Check permission. Many agreements require the builder’s consent and charge a fee.
- Understand tax. Assignment profits are taxable, HST can apply, and Canada’s residential property flipping rule generally treats profits on homes held less than 365 days as business income.
- Expect competition. When many buyers in the same building try to assign at once, prices can fall below the original contract price.
Speak to a lawyer and an accountant before you sign an assignment or plan around one.
Resale: what you get on day one
| Pre-construction | Resale | |
|---|---|---|
| Price certainty | Fixed price, but adjustments added at closing | Known price, standard closing costs |
| What you see | Floor plans and renderings | The actual unit, building and neighbours |
| Appraisal | Years later, at closing | Before you firm up |
| Building history | None yet | Status certificate, reserve fund, fee history |
| Rental income | Starts after occupancy or closing | Can start right after closing |
| Warranty | Tarion new home warranty | Remaining warranty only, if any |
For investors, the cash-flow test is simple: compare realistic rent with the mortgage, condo fee, property tax and insurance. Resale lets you do that with real numbers today. Markham’s resale market also favours buyers right now, with about 9 months of inventory in September 2026, according to Wahi.
How interest rates change the math
Rates matter differently for each option. With resale, you know your mortgage rate within weeks of buying. With pre-construction, you sign today but arrange your mortgage years later, at whatever rates and lending rules apply then. The Bank of Canada held its policy rate at 2.25% on September 2, 2026, and said it was prepared to raise rates if tariff costs spread into everyday prices.
Lenders also qualify you at the time of closing, using the stress test at the greater of your contract rate plus 2% or 5.25%. If your income, debts or rates change before then, the mortgage you can get may not match the one you planned for. Build a cushion into any pre-construction plan.
When pre-construction still makes sense
- You want a brand-new home and can wait several years.
- A long deposit schedule helps you save while the building goes up.
- You qualify for HST relief that makes the numbers work.
- The builder offers strong terms, such as capped adjustments, free assignment or a meaningful price reduction.
Choose the option that fits your situation, and have a real estate lawyer review any builder agreement during the cooling-off period. In Ontario, buyers of new condos have 10 days to cancel after signing or receiving the disclosure statement, whichever is later.
The better deal is the one that still makes sense with real numbers, not projected ones. Call the Kaizen Real Estate Team at (647) 370-8885 or book a consultation.
Frequently asked questions
Is pre-construction or resale cheaper in the GTA right now?
Resale is often cheaper per square foot. Urbanation reported in July 2026 that completed, unsold new condos were asking an average of $1,186 per square foot, versus $830 for resale units in recently built projects.
What are interim occupancy fees?
If you move into a new condo before the building is registered, you pay a monthly occupancy fee, typically made up of interest on the unpaid balance, estimated property tax and the condo fee. It does not reduce your purchase price.
What closing costs come with a pre-construction condo?
Beyond land transfer tax and legal fees, builders can pass on adjustments such as utility connections, Tarion enrolment and increases in development charges. Look for caps on these in your agreement.
Can I sell my pre-construction condo before closing?
Only if your agreement allows an assignment. Builders often require consent and charge a fee, and tax and HST can apply. In a soft market, assignments may sell below the original price.
Do new homes qualify for HST relief in Ontario?
Ontario’s enhanced HST relief applies to eligible new homes bought under agreements signed between April 1, 2026 and March 31, 2027. The provincial rebate is up to $80,000 for eligible buyers.
Can I cancel a pre-construction condo purchase in Ontario?
Buyers of new condos in Ontario have a 10-day cooling-off period after signing or receiving the disclosure statement, whichever is later. Have a real estate lawyer review the agreement during that time.
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. Licence #4784577. Call (647) 370-8885. Sources include Urbanation (July 20, 2026), City of Markham development charge rates effective July 1, 2026, the 2026 Ontario Budget HST relief as summarized by Aird & Berlis, and Wahi’s Markham report of September 26, 2026. Speak to a lawyer and accountant about any agreement, assignment or tax question. This article is general information only and is not financial, legal or tax advice. Not intended to solicit buyers or sellers currently under contract with another brokerage.
