Kelowna Towers, Different Market

Those New Kelowna Towers Were Built for a Different Market

Drive through downtown Kelowna right now and it is easy to think new construction must be booming.

You see cranes.
You see towers topping out.
You see glass, balconies, concrete, and crews working.

The easy conclusion is: Kelowna real estate must be strong.

But that is not the full story.

A lot of the towers being finished today were not planned for today’s market. They were planned, financed, marketed, and often presold during the 2020–2022 boom, when money was cheap, buyers were confident, and many investors believed prices would keep going up.

That matters if you are Living in Kelowna, buying a condo, selling a property, investing, or trying to decide what to do with a presale contract.

The Cranes You See Today Are From Yesterday’s Market

New towers do not appear overnight.

Most large condo developments take years to move from land assembly to design, approvals, presale launch, financing, construction, and completion.

So when you see a building finishing in 2026, the real decision may have started in 2020, 2021, or 2022.

That is a very different market.

Back then:

• Interest rates were much lower
• Investor demand was stronger
• Presale buyers were more aggressive
• Rents were rising quickly
• Many people assumed values would keep climbing
• Appraisals were easier to justify

Today, the math is different.

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Why This Matters for Kelowna Buyers

If you are buying a newer condo while Living in Kelowna, you need to understand the difference between replacement cost and market value.

A building may be expensive to construct, but that does not automatically mean resale buyers will pay the original presale price.

That is where buyers can find opportunity.

Some owners may be completing on units they no longer want to hold. Others may be trying to assign contracts. Some may be facing financing pressure, appraisal gaps, or higher carrying costs.

The Key Buyer Question

Ask this:

“Was this price based on today’s market, or the market from when the project launched?”

That one question can change how you look at the opportunity.

Why This Matters for Kelowna Sellers

If you are selling a condo, townhouse, or home near newer development, it is easy to think new construction helps your value.

Sometimes it does.

But if a wave of new units hits the market at the same time, it can also create more competition.

That can affect:

• Days on market
• Buyer traffic
• Price reductions
• Negotiation room
• Appraisal support
• Investor demand

This is why local context matters so much in Kelowna real estate.

Sellers Need to Watch the Resale Competition

A seller should not only look at what new units are asking.

They should also look at:

• What completed units are actually reselling for
• How many similar units are active
• How long they are sitting
• Whether investors are exiting
• Whether buyers are choosing resale over presale

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Why This Matters for Investors

For investors, the old presale playbook was simple.

Put down a deposit.
Wait for the building to finish.
Hope the market rises.
Assign the contract or complete with instant equity.

That worked very well in some markets for a long time.

But it only worked because one major assumption held true:

Prices kept rising.

When prices stop rising, the strategy changes fast.

The Presale Investor Math Has Changed

Investors now have to look harder at:

• Mortgage rates
• Strata fees
• Property taxes
• GST
• Property Transfer Tax
• Speculation and vacancy tax risk
• Rental income
• Vacancy risk
• Insurance costs
• Appraisal value
• Resale competition

This is not to say presales are bad.

It means they need to be judged with today’s numbers, not yesterday’s excitement.

The Boom-Year Presale Problem

During the boom, many buyers were not only buying a property.

They were buying a story.

The story was:

“Kelowna is growing, people are moving here, land is limited, and prices will keep climbing.”

Parts of that story are still true.

People still love the Okanagan lifestyle. Kelowna still attracts retirees, families, remote workers, investors, students, and people moving from larger cities.

But even a great long-term story can run into short-term math problems.

That is what we are seeing now.

Living in Kelowna Is Still Desirable — But Price Still Matters

There is no question that Living in Kelowna is attractive.

We have the lake, wineries, skiing, hiking, restaurants, schools, health care, and a lifestyle that many people want.

But buyers are more careful today.

They are not just asking, “Do I want to live here?”

They are asking:

• Can I afford this payment?
• Is there better value in resale?
• What happens if prices stay flat?
• Can I rent it for enough?
• Will the bank appraise it?
• Is this a lifestyle purchase or an investment?

That is a much more serious buyer.

The Interest Rate Shift Changed the Whole Market

One of the biggest changes from presale launch to completion is interest rates.

Many projects launched when borrowing was cheap. Buyers qualified based on a much friendlier lending environment.

By the time some of those units completed, mortgage payments were much higher.

That matters because a buyer who could afford the payment in 2021 may feel very different about the same purchase today.

Example of What Buyers Should Compare

Before completing on a presale or buying a newer resale unit, compare:

Why the Appraisal Gap Matters

An appraisal gap happens when the bank says the property is worth less than the purchase price.

For example:

• Contract price: $750,000
• Appraised value: $700,000
• Gap: $50,000

That buyer may need to bring in more cash, renegotiate if possible, or rethink the purchase.

For anyone moving to Kelowna, this is one of the most important risks to understand with newer condos and presales.

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What This Means for Presale Owners

If you own a presale contract, you may have more options than you think.

But each option has pros and cons.

You may be able to:

• Complete and keep the unit
• Complete and rent it
• Complete and resell it
• Try to assign the contract
• Negotiate with the developer
• Review financing and appraisal options
• Compare the unit to active and sold resale inventory

The key is not to guess.

The key is to run the numbers.

Assignment Is Not Always Simple

Assignment sounds easy, but it depends on the developer contract.

You need to check:

• Is assignment allowed?
• What is the developer assignment fee?
• Is the fee 1%, 2%, 3%, or a flat amount?
• Does the developer need to approve the buyer?
• Can the assignment be advertised publicly?
• Who pays GST?
• Who pays legal fees?
• Who pays realtor fees?
• Is there enough price spread to make it worthwhile?

This is where people can get caught.

A small mistake can cost a lot of money.

What This Means for Buyers Comparing Kelowna Homes for Sale

If you are browsing Kelowna homes for sale, newer condo inventory should be reviewed carefully.

Do not just compare list prices.

Compare:

• Price per square foot
• Floor height
• View
• Parking
• Storage
• Strata fees
• GST exposure
• Building amenities
• Rental rules
• Developer reputation
• Resale history
• Active competition

This is especially important if you are Living in Kelowna and choosing between downtown, South Pandosy, Glenmore, Rutland, West Kelowna, and Lake Country.

West Kelowna and Lake Country Buyers Should Watch This Too

This is not only a downtown Kelowna story.

The same idea applies across the region.

In West Kelowna, buyers may compare leasehold, freehold, newer townhomes, lakeview condos, and single-family homes.

In Lake Country, buyers may compare new construction, resale homes, townhomes, and properties with more space.

Across the Okanagan, the question is the same:

Was the price built for today’s market, or the market from three years ago?

Living in Kelowna Long Term Still Has Strength

It is easy to hear this and think the outlook is negative.

That is not the point.

Long term, Living in Kelowna still has strong appeal.

The region has lifestyle demand, limited land, recreation, schools, health care, tourism, and a growing profile across Canada.

But even in a great place, pricing still matters.

A good city does not make every property a good buy at every price.

The Smart Move Is to Separate Lifestyle From Investment

When helping clients, I like to separate the decision into two parts:

Lifestyle value:
Do you love the home, the view, the walkability, the building, and the area?

Investment value:
Do the numbers make sense based on today’s resale market, rent, financing, and long-term demand?

The best purchases usually make sense on both sides.

Quick FAQ: Are New Kelowna Towers a Sign of a Hot Market?

Are new Kelowna towers proof today’s market is strong?

Not always. Many towers finishing today were planned, financed, and presold years ago. They may reflect the confidence of the 2020–2022 market more than today’s buyer demand.

Is buying a newer condo in Kelowna a bad idea?

No. It can be a great move if the price, building, location, financing, rental rules, and resale data make sense.

Should presale owners complete or assign?

It depends on the contract, current resale value, appraisal, GST, taxes, financing, rental potential, and assignment rules. This needs a property-by-property review.

Is Living in Kelowna still a good long-term decision?

For many people, yes. Living in Kelowna still offers a strong lifestyle, but buyers should be careful not to overpay based on old market assumptions.

Final Thought: Don’t Let the Cranes Fool You

The towers you see today are not always proof that today’s market is booming.

They are often proof that developers, lenders, and buyers made decisions years ago in a very different market.

That does not mean there is no opportunity.

In fact, this type of market can create opportunity for careful buyers, realistic sellers, and investors who understand the numbers.

But the days of buying anything new and assuming the market will bail you out are gone.

If you are Living in Kelowna, moving to Kelowna, selling a condo, buying a presale, or comparing new construction in the Okanagan, make sure you understand the story behind the building — not just the skyline.

Need Help Understanding the Kelowna Condo Market?

Mark & Maddie can help you compare current listings, recent sales, presale pricing, assignment risk, and resale value before you make a move.

Whether you are buying, selling, investing, or trying to decide what to do with a presale contract, we can help you look at the numbers clearly.

Contact Mark & Maddie for Kelowna real estate help today.

Phone: 778-946-6454
Email: [email protected]

Mark Coons Personal Real Estate Corporation, BBA, CE
Team Lead, Selling Okanagan Group
REALTOR® | eXp Realty Kelowna
Relocated to Kelowna in 2018