For anyone considering a pre-construction purchase in Markham, there is an election issue that could directly affect the cost and availability of new homes. Development charges. The council elected in October 2026 will make decisions about development charges that affect new construction, and pre-construction buyers should understand what is at stake.
Michael John Lau, top real estate agent in Markham Ontario and CPA/CMA, explains what pre-construction buyers need to know.
What Development Charges Are
Development charges are fees that municipalities levy on new construction to fund the infrastructure needed to serve growth. Roads, water, sewers, community facilities, transit. In Markham, development charges are among the highest in Canada at approximately $121,500 per condo unit, a substantial cost that is built into the price of new homes.
Development charges matter enormously for new construction because they represent a significant portion of the cost of building, and that cost is ultimately reflected in the price buyers pay for new homes. High development charges, combined with rising construction costs and other pressures, affect the feasibility of new development and the price of new homes.
Why the Election Matters Here
Development charges are set by council. The new council may review, adjust, maintain, or restructure development charges as part of its governance. Where candidates and the elected council stand on development charges is genuinely relevant to pre-construction buyers, developers, and the housing supply.
Possible Direction | Likely Effect on New Construction |
|---|---|
Charges increase | New home costs rise further; feasibility worsens; supply may contract further |
Charges held flat | Status quo; existing feasibility pressures persist |
Charges reduced or restructured | Construction may become more feasible; supports supply and potentially pricing |
Phasing or deferral changes | Affects developer cash flow timing rather than total charge, but can restart stalled projects |
Neeraj Moolchandani on Pre-Construction Purchases and Markham New Home Supply
Neeraj Moolchandani, REALTOR® at Kaizen Real Estate, works alongside Markham clients navigating exactly the situation this article describes. His specialty is translating complex market dynamics into a clear plan of action, whether that involves timing, negotiation strategy, or protecting long-term family wealth.
When Neeraj advises clients on pre-construction purchases and markham new home supply, the conversation always starts with what matters most to the family, not what the market is doing this week. That is the difference between transactional advice and the kind of counsel Markham buyers return to for a decade.
The Broader Development Environment
The context makes this particularly important. Markham's development charges are already among the highest in Canada, and the broader development environment is challenged. Construction costs have risen dramatically, tariffs have added $30,000 to $50,000 per build, and pre-construction sales have slowed, causing developers to delay and cancel projects.
In this environment, development charge decisions could meaningfully affect whether and at what cost new homes get built. Condo construction starts sit at their lowest level since 1996, which points toward a constrained future supply picture regardless of which direction charges move. That supply constraint is one of the reasons some long-horizon investors view the current period as an entry window rather than a warning sign.
What Pre-Construction Buyers Should Do
Understand the Cost Structure
Recognize that development charges among the highest in Canada are a significant part of new home costs in Markham. This helps you evaluate pre-construction pricing and value.
Watch the Election and New Council
Pay attention to where candidates stand on development charges and what the new council decides. These decisions affect cost and availability of new construction.
Consider the HST Rebate Timing
The rebate on eligible new construction offers up to $130,000 for agreements signed before March 31, 2027. Verify eligibility for your specific property.
Assess Developer Track Record
In an environment where projects are being delayed and cancelled, developer financial strength and delivery history matter more than in ordinary conditions.
Review the Contract Carefully
Pre-construction agreements contain occupancy provisions, adjustment clauses, assignment restrictions, and cancellation terms. A real estate lawyer review is essential.
Get Professional Guidance
Pre-construction involves cost structure, incentives, developer risk, contract terms, and market dynamics. Professional guidance helps you navigate all of it.
Evaluate Pre-Construction With Full Information
The cost structure, the incentives, and the risks all deserve scrutiny. Book a private consultation with the Kaizen Real Estate Team.
Understanding Pre-Construction Risk
Pre-construction purchases carry genuine risk that resale purchases do not. Delivery timelines can extend significantly. Occupancy fees apply during the interim occupancy period. Adjustments at closing can exceed expectations. Projects can be cancelled. In the current environment, with developers delaying and cancelling projects under cost pressure, these risks are elevated rather than theoretical.
The 2026 election could affect development charges and, by extension, the cost and availability of new homes. Informed pre-construction buyers should understand what is at stake and should engage a real estate lawyer before signing any agreement. Michael John Lau, top real estate agent in Markham Ontario and CPA/CMA, helps pre-construction buyers understand the full picture.