If you’re considering new construction in Greater Victoria, there are a few things worth understanding before you move forward.
On the surface, buying brand new sounds simple. No renovations. Modern finishes. Energy efficiency. But in reality, new construction often comes with moving parts that aren’t obvious at first glance—timelines that can shift, contracts that heavily favour developers, and costs that don’t always show up in the brochure.
We’ve guided buyers through pre-sales, new townhomes, and newly built houses across South Vancouver Island, including Victoria, Saanich, and Oak Bay.
In this article, we’re sharing the checklist we use with our clients so you can make an informed decision—whether you choose new construction or resale.
Why New Construction in Victoria Can Be More Complex Than It Looks
Marketing for new developments is always strong. The show suite looks beautiful. The brochures are polished.
But what you don’t see at the presentation centre is:
- Clauses in the contract that heavily favour the developer
- Completion dates that are projections, not guarantees
- Added costs that aren’t always obvious at first glance
- Market shifts that may change the investment case mid-project
We’re not here to scare you away from new construction. In fact, it can be a fantastic option. But it requires strategy.
The worst thing you can do is sign first and ask questions later.
GST on New Construction in BC: What Buyers Need to Know
One of the biggest surprises for buyers in British Columbia is GST.
When purchasing new construction in Victoria, you typically pay 5% GST on top of the purchase price.
However, it’s not always straightforward. We look at:
- Is GST included in the advertised price?
- Is it added on top?
- Are rebates being assumed in the marketing?
- Are you buying as a primary residence, investment, or secondary home?
Your intended use matters.
There has been discussion in the news about GST exemptions, but regulations and approvals can shift. We always confirm the current rules and connect our clients with qualified professionals for verified tax advice before they make decisions.
Property Transfer Tax (PTT): Not Always Exempt
Many buyers assume new construction is automatically exempt from Property Transfer Tax in BC.
That’s not always the case.
Eligibility depends on:
- Purchase price thresholds
- First-time homebuyer status
- Residency status
- Whether tax is calculated on land only or land plus improvements
In the Victoria housing market, especially as prices fluctuate, crossing a threshold by even a small amount can change your eligibility.
We walk our clients through this early in the process so there are no surprises at closing.
Understanding the 2-5-10 New Home Warranty in BC
New homes in BC are covered by the 2-5-10 warranty, which includes:
- 2 years for most defects inside the home
- 5 years for the building envelope (roof, siding, windows, perimeter drains)
- 10 years for structural defects and foundation issues
But here’s something most buyers don’t realize:
There’s a difference between a defect and a frustration.
Hairline cracks in concrete? Often considered normal settling.
Minor drywall screw pops? Common during the first year.
Coverage depends on severity and defined thresholds.
In our experience, the best “warranty” is understanding the builder’s track record. In Greater Victoria, we have a smaller developer pool, which means we can look at:
- Past project performance
- On-time delivery history
- Deficiency patterns
- Buyer feedback
Reputation matters.
The Biggest Risk with Pre-Sales: Timelines
If you’re buying a pre-sale condo in Victoria, the biggest variable is timing.
When a brochure says “Completion Spring 2027,” that’s a projection—not a promise.
Delays can happen due to:
- Supply chain issues
- Permitting delays
- Labour shortages
- Unexpected site problems
We’ve even seen projects delayed due to unforeseen incidents like construction fires.
Because of this, we rarely recommend selling your current home based solely on a projected completion date. May can turn into August… or November.
You need a backup plan.
Location & the Official Community Plan (OCP)
Even if a condo is beautiful, we always ask:
What will this neighbourhood look like in 5–10 years?
We review the municipality’s Official Community Plan (OCP) to understand:
- Future zoning changes
- Density increases
- Planned developments
- Infrastructure improvements
For example, if you’re buying for a view but older homes across the street are zoned for higher density, that view may not be permanent.
We also evaluate:
- School access
- Transit
- Walkability
- Future resale competition
In Victoria real estate, long-term planning makes a big difference.
Developer-Favoured Contracts & Assignment Clauses
Pre-sale contracts are typically written almost entirely in favour of the developer.
Important clauses we review with our clients include:
- Completion date extensions
- Material substitutions
- Deposit structures
- Adjustment costs
- Assignment restrictions
Assignment is especially important.
Life changes. Markets shift. If you need to sell before completion, can you assign the contract? Are there fees? Is it restricted entirely?
You need an exit strategy before you commit.
A Real-World Example: Due Diligence in Action
We had a client who fell in love with a condo because of the incredible view.
When we reviewed the OCP, we noticed a development site across the street. The contract also restricted assignment.
The client decided the risk wasn’t worth it.
About a year before completion, a building permit was issued for a structure that would have completely blocked the view.
Due diligence likely saved them from a disappointing—and costly—outcome.
Is New Construction or Resale Better in Victoria?
New construction may be ideal if:
- You plan to hold long-term
- You want lower early maintenance
- Energy efficiency matters
- You have flexibility with timing
Resale might be better if:
- You need a firm completion date
- You want negotiating power
- You’re comfortable updating or renovating
- You prefer seeing exactly what you’re buying
Both options can be excellent in the Victoria real estate market—it depends on your goals.
Our Approach at North Pacific Homes Group
We don’t push new construction.
We don’t push resale.
We help you understand the full picture.
Our team works with buyers across Greater Victoria to:
- Analyze contracts before you commit
- Understand hidden costs
- Evaluate builder reputation
- Assess long-term neighbourhood growth
- Create a risk-mitigation strategy
Because smart real estate decisions aren’t about emotion alone— they’re about clarity.
If you’re thinking about buying new construction or resale in Victoria, BC, we’d be happy to answer any questions—no matter how early you are in the process. Even a short conversation can help you avoid expensive surprises later.
Thanks for being here,
Alex Hughes, REALTOR®, Personal Real Estate Corporation — North Pacific Homes Group (eXp Realty) | Victoria, BC Real Estate
Ricki-Lee Jewell, REALTOR® — North Pacific Homes Group (eXp Realty) | Victoria, BC Real Estate
Steven Reilander, REALTOR® — North Pacific Homes Group (eXp Realty) | Victoria, BC Real Estate
Disclaimer: The information in this article is provided for general educational purposes only and should not be considered legal, tax, or financial advice. Every situation is unique. We always recommend consulting a qualified lawyer, accountant, or appropriate professional for advice specific to your circumstances. We are happy to connect our clients with trusted local professionals as part of the process.
