The Risk of Buying a New Development That Is Not Sold Out in Kelowna
What Buyers in Kelowna, West Kelowna, and Lake Country Need to Know Before They Buy
Thinking about buying in a brand-new condo or townhome project?
It can look like the perfect move. New finishings. New-home warranty. Lower maintenance at the start. A fresh lifestyle.
But there is a risk many buyers do not think about enough: what happens if the development does not fully sell out as planned?
That matters a lot in Kelowna real estate right now. In one local example, Ascent in Kelowna’s Upper Mission is being marketed both as ownership and as rental within the same community, which is a good reminder that a project can change direction when market demand softens. The ownership site promotes move-in-ready condos, while a separate site for the same community also invites renters to lease there.
For some buyers, that may be fine. For others, it can feel very different from what they thought they were buying into.
If you are Living in Kelowna, or planning on moving to Kelowna, here is what you need to know before you buy into a project that is not fully sold out.
[Image Placeholder: Suggested royalty-free photo of a modern Kelowna condo development with mountain views]
Why Unsold New Developments Can Be Risky
Buying new does not always mean buying certainty
A lot of buyers assume a new development is a safer bet because the building is new.
That is only partly true.
A new project can still have sales risk, rental risk, budget risk, strata risk, and resale risk. If the project is not selling well, the developer may need to offer incentives, hold units, rent units, or change the mix of how the community operates. That can affect how owners feel about the building and how future buyers see it too.
The market can shift before the project is fully stabilized
Kelowna’s condo market has moved more into buyer-friendly territory, and softer condo demand has already pushed some local developers to pivot projects toward rental use.
That is why Living in Kelowna and buying brand new is not just about the floor plan. It is also about the project’s financial health and long-term direction.
The Ascent Kelowna Example Buyers Should Think About
Why this example matters
At Ascent, the ownership website says buyers can purchase in Alpha and Bravo, while the broader Ascent site clearly says the same community is set up for both people who want to own and people who want to rent.
That does not automatically mean the project is bad.
But it does show a real concern buyers have:
What if I bought into a condo community expecting mostly owners, and now more of the project becomes rental?
That question matters because some buyers worry that:
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Owner occupancy may end up lower than expected
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Resale buyers may see the project differently
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Investor-heavy sections can change building feel and turnover
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Appraisers and future buyers may compare the project to rental-heavy product nearby
Not every rental-heavy building loses value. That would be too simple.
But buyer perception matters. And in Kelowna homes for sale, perception often affects demand, days on market, and resale strength.
Will Rentals in the Project Automatically Hurt Value?
Not always — but they can change buyer demand
There is no rule that says rentals automatically lower value.
In fact, some investors may like that flexibility.
But for end users, especially families or buyers seeking a more owner-occupied feel, more rentals can create hesitation. That can shrink your future buyer pool. And when your buyer pool gets smaller, resale can get harder.
This is a big issue for people Living in Kelowna who plan to stay for only a few years. If you may need to sell in the short to medium term, project stability matters even more.
Strata Risk: One of the Biggest Hidden Concerns
A brand-new strata is still a new business
Many buyers forget this part.
When you buy into a new condo, you are not just buying a unit. You are joining a brand-new mini business called a strata corporation.
Before the first AGM, the owner developer controls the strata council, must provide an interim budget, establish the contingency reserve fund, and later hand over records, plans, warranties, manuals, and finances.
That creates a few risks.
Risk 1: The first budget may be too low
If the interim budget is set too low, owners can face fee increases after turnover. BC rules say if actual expenses exceed the estimated budget, the developer may have to pay the difference and penalties in some cases. That tells you this is a known risk area.
Risk 2: Strata fees can rise fast after possession
A low starting strata fee can look attractive.
But sometimes it is not the real long-term number.
Insurance, utilities, amenities, management, janitorial, landscaping, and repairs all add up. Buyers in Kelowna real estate should never assume the first fee is the forever fee.
Risk 3: Contingency reserve fund may still be thin early on
BC requires the developer to make a lump-sum contribution to the CRF at first conveyance, and strata corporations now must contribute at least 10% of the annual operating fund to the CRF each year.
That is good.
But a new strata can still be in its early funding stage. A CRF is there for major costs that do not happen every year, like roofs, paving, elevators, and other shared repairs.
In plain English: new does not mean future-proof.
[Image Placeholder: Suggested royalty-free photo of condo meeting papers, budget sheets, and keys on a table]
Disclosure Statement Risk: Read More Than the Marketing Brochure
This is one of the biggest mistakes buyers make
Before signing a pre-sale contract in B.C., buyers should receive a Disclosure Statement. It describes the property, common features, governing documents, first-year budget, and gives the buyer a seven-day cooling-off period.
BCFSA says disclosure statements must plainly and accurately represent all material facts.
And under REDMA guidance, material facts include facts that could reasonably affect the value, price, or use of the strata lot or development.
What buyers should be asking
If you are Living in Kelowna and considering a not-yet-sold-out development, ask:
Has the disclosure statement been amended?
Changes matter.
Are any buildings or phases being rented instead of sold?
That can be important to your decision.
Have amenities, timelines, or layouts changed?
Do not assume the first brochure is still the plan.
Rental Disclosure Matters More Than Most Buyers Think
If a developer intends to rent one or more residential strata lots, the owner developer must file a Rental Disclosure Statement and give a copy to each prospective purchaser before they enter into a purchase agreement. The developer can later change the number of rental lots or rental period only under certain legal conditions. If they do not follow the disclosure rules, the purchaser may cancel the agreement without penalty.
That is a huge point.
If rentals matter to you, this is not a side issue. It is a front-and-center issue.
Other Buyer Concerns in Unsold Developments
Appraisal risk
If comparable sales are weak, incentive-heavy, or limited, financing can get trickier.
Investor concentration
Too many investor-owned units can change how stable the community feels.
Amenity risk
Some features may be delayed, phased, or changed.
Resale competition
If the developer is still selling brand-new units with incentives, your resale unit may have to compete with the builder.
Insurance and deductible exposure
In strata living, insurance deductibles and future repair costs matter more than many buyers realize, especially as costs rise.
This is why Living in Kelowna in a condo is not just about location and finishings. It is also about governance, funding, and exit strategy.
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Questions Every Buyer Should Ask Before Buying New in Kelowna
Ask these before you remove subjects
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How many units are sold, closed, and still held by the developer?
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Are any phases now planned as rental?
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Is there a Rental Disclosure Statement?
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Have there been amendments to the Disclosure Statement?
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What is the interim budget based on?
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What does the strata fee include?
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What is the CRF contribution today?
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Who will likely be the end buyer for this unit if I sell in 3–5 years?
📥 Download our free Kelowna Home Buyer’s Guide today.
Is This Risk Only in Kelowna?
No.
This issue can affect buyers in West Kelowna, Lake Country, and across the Okanagan too.
But it matters even more in areas where a lot of new product has come online at once, or where developers are adjusting to changing demand.
If you are moving to Kelowna for the Okanagan lifestyle, it is easy to fall in love with the view, the deck, and the design. Just make sure you also love the numbers, the documents, and the long-term plan.
The Bottom Line for Buyers Living in Kelowna
Buying new can still be a great move.
But buying into a development that is not fully sold out means you need to look deeper.
You are not just buying countertops and a parking stall.
You are buying into:
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a developer’s strategy
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a new strata’s financial setup
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a resale story
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and sometimes a community that may end up more rental-heavy than expected
For buyers Living in Kelowna, that does not mean “do not buy new.”
It means buy smart.
It means asking better questions.
It means understanding the difference between a great-looking unit and a strong long-term purchase.
[Image Placeholder: Suggested royalty-free photo of a Kelowna REALTOR reviewing strata documents with buyers]
Need Help Buying in Kelowna or the Okanagan?
If you are comparing Kelowna homes for sale, looking at presales, or trying to decide between new and resale in Kelowna, West Kelowna, or Lake Country, we can help you read between the lines.
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Reach out to Mark & Maddie for help with Kelowna real estate and smart buying decisions.
Mark Coons, BBA, CE
REALTOR® | eXp Realty Kelowna
Team Lead, Selling Okanagan Group
Relocated to Kelowna in 2018
📞 778-744-0872
📩 [email protected]
Whether you are already Living in Kelowna or moving to Kelowna soon, we would be happy to help you make a better real estate decision.
