The question comes up at every buyer meeting in 2026: new condo or resale? With Trump 50% tariffs on steel and aluminum in effect since June 2025 and the QPAAB median condo price at $420,000 (March 2026, +3% year-over-year), the new-resale gap reaches a historic peak. Here is the concrete comparison.
1. Price per sq ft — 15 to 25% gap
In May 2026, median price per sq ft is ~$525/sq ft resale vs $600 to $660/sq ft new. On an 800 sq ft condo:
Resale 800 sq ft
$420,000
$525/sq ft — no taxes
Equivalent new
$505,000
$631/sq ft before GST/QST
2. GST and QST — the new condo trap
New condos are subject to GST 5% and QST 9.975%, totaling 14.975% in taxes. On a new condo at $505,000: +$75,624 in taxes. Resale, on the other hand, is not taxed — you pay the listed price.
GST rebate (36%) and QST rebate (50%) only apply to condos under $350,000 (GST) and $200,000 (QST). In Montreal in 2026, these rebates are zero for nearly all new projects.
3. Impact of Trump 50% tariffs
Since June 2025, 50% tariffs on imported steel and aluminum increased structural costs of new projects by 8 to 12%. This increase is built into selling prices.
A new condo that would have cost $450,000 before tariffs now sells for $485,000 to $505,000 for the same product. Resale doesn't absorb this rise — widening the historic gap between new and resale.
4. GCR warranties — what new protects
- 5 years: building structure (foundation, framing, roof).
- 3 years: latent defects and major flaws.
- 2 years: plumbing, electrical, ventilation.
- 1 year: cosmetic defects, finishes, included appliances.
With resale, you take the building as-is — hence the importance of a pre-purchase inspectionand a rigorous analysis of the seller’s declaration.
5. Total 5-year cost
New condo $505,000 + GST/QST
- Price + taxes: $580,624
- 5-year condo fees (~$0.40/sq ft): ~$19,200
- 5-year repairs: ~$0 (GCR-covered)
- Total 5-year cost: ~$599,824
Resale condo $420,000
- Purchase price: $420,000
- 5-year condo fees (~$0.55/sq ft): ~$26,400
- 5-year repairs/renovations: ~$15,000 to $25,000
- Total 5-year cost: ~$466,400
5-year difference: ~$133,000 in favor of resale. New only wins if you strongly value the warranty, customization or future resale value in a rapidly appreciating neighborhood.
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