The Markham Pre-Construction Assignment Market — Are Downtown Condo Buyers Actually Making Money in 2026?

For years, the narrative around Markham pre-construction condos — particularly in Downtown Markham and UnionCity — was simple: buy early, wait for the building to complete, and assign the contract for a massive profit before closing. But as we navigate the 2026 market, that narrative has collided with financial reality. Michael John Lau, Markham's top REALTOR® and a CPA/CMA, analyzes the actual numbers behind the assignment market to show what original buyers are really walking away with.

What is an Assignment Sale?

An assignment sale occurs when the original buyer of a pre-construction condo sells their rights to the Agreement of Purchase and Sale to a new buyer before the building is registered and legal title transfers. The new buyer steps into the original buyer's shoes, pays the original buyer the agreed-upon "premium" (the profit), and then completes the purchase with the builder at closing. The original buyer never actually takes possession of the unit.

The Math Behind an Assignment Sale

Let's look at a typical Downtown Markham assignment scenario. An original buyer purchased a 700 sq ft condo in 2021 for $650,000. In 2026, they assign the contract to a new buyer for $730,000. On paper, that's an $80,000 profit. But as a CPA, I have to look at the actual cash flow:

• Deposit Carrying Costs: The original buyer had roughly 20% ($130,000) tied up in deposits over 4-5 years. The opportunity cost of that capital is significant.
• Builder Assignment Fee: Most Markham builders charge an administrative fee to allow an assignment, typically ranging from $5,000 to $10,000.
• Realtor Commissions: The original buyer pays the real estate commission on the entire assignment price ($730,000), not just the profit. At 3.5%, that's $25,550.
• Legal Fees: Both the original and new buyer require specialized real estate lawyers to draft and review the assignment agreement, costing $2,000 to $4,000.

When you subtract the builder fee, commissions, and legal costs from that $80,000 paper profit, the original buyer's net profit shrinks to roughly $40,000 — and that's before accounting for the opportunity cost of the deposits or potential HST implications.

When Assignments Actually Make Sense

Assignments are not inherently bad investments, but the margin for error has narrowed significantly. They make the most financial sense in three scenarios: (1) The original buyer secured exceptional early-adopter pricing that is now well below current replacement costs; (2) The original buyer's life circumstances have changed (job relocation, marriage, downsizing) and they need to exit the contract before closing because they no longer qualify for the mortgage or no longer want the unit; or (3) The new buyer is purchasing an assignment because the building is nearly complete and they want to avoid the 2-3 year wait of a true pre-construction purchase.

For buyers looking to purchase an assignment in Downtown Markham, the advantage is that you are buying a unit that is either already built or nearing completion, meaning you can see the actual finishes, the view, and the exact layout — eliminating the "rendering risk" of traditional pre-construction. However, you must ensure you have the financing pre-approval in place to close the full purchase price with the builder on the scheduled closing date.