Nova Scotia Condominium Fee Reform: Regulatory And Market Outlook One Year Later

Effective August 30, 2024, Nova Scotia implemented amendments to the condominium development fee regime under the Condominium Act through O.I.C. 2024-289 (N.S. Reg. 150/2024). These changes restructured how registration and approval fees are calculated, shifting from a value-based system to a predictable per-unit model capped at 50 units. This article serves both as a reminder of the amended fee structure and as an evaluation of its relevance in today's market, one year after implementation.

At the time of their introduction, the government emphasized that the changes were intended to reduce barriers for condominium development and to improve cost predictability by tying fees to project scale rather than market value. Minister Colton LeBlanc described the amendments as "another way that government is supporting the housing challenges we're seeing in the province."

One year later, the regulatory framework is clearer, but the broader market context has shifted: condominium activity has remained subdued, while rental construction has reached record highs. Against this backdrop of continued cost pressures and supply challenges, the fee reforms should be understood as one element of a much larger cost environment. They provide useful predictability on approvals, but do not alter the wider financial dynamics driving development decisions.

A Reminder on What Changed: Fee Structure Reform

Under the previous regime, registration fees for examining a condominium description were tied to the advertised sale price of the units, with different rates applying depending on the type of development: $2.50 per $1,000 for residential units, $4.95 per $1,000 for recreational units, and $7.45 per $1,000 for commercial units. This value-based system created cost uncertainty and often resulted in substantial fee obligations for higher-value projects, making accurate forecasting more difficult at the planning stage. (link to previous Registration Fee Structure)

The amended regulation replaced that approach with a predictable per-unit model. Under the current Schedule "B," developers pay a flat fee of $400 per unit, capped at 50 units, regardless of the sale price or market value of the units.

Example 1: A condominium with 100 residential units priced at $500,000 each would, under the old regime, have incurred a description examination fee of $1,250 per unit, totaling $125,000. Under the current model, the fee is $400 per unit, capped at 50 units, for a total of $20,000.

Example 2: A condominium with 100 residential units priced at $500,000 each would previously have incurred $1,250 per unit, totaling $125,000. Under the current model, the fee is again $400 per unit, but capped at 50 units, for a total of $20,000.

Aside from the revised fee structure, all other filing and registration requirements under the Condominium Act and Regulations remained unchanged.

Market Context: One Year Later

The fee reforms coincided with a period of extraordinary housing construction in Halifax. According to CMHC's 2025 Housing Supply Report:

• Rental apartments under construction reached over 10,000 units in June 2025, the highest level on record and far above the 10-year average.
• Demand has been driven by rapid population growth, affordability challenges in homeownership, and lower interest rates.

Condominium starts, by contrast, have remained limited compared to rental. This reflects both market preference and financing trends, with purpose-built rental dominating the supply pipeline.

Given subdued condo starts and strong rental construction, the revised fee structure is most relevant to approvals planning, presale thresholds, and lender conversations on condo proposals. This divergence underscores why cost predictability, while important, is only one factor in whether condominium projects proceed. The revised fee regime is most impactful at the approvals stage, informing budgeting, phasing decisions, presale thresholds, and lender conditions, while broader financial dynamics continue to drive feasibility.

Practical Takeaway

The amendments to Nova Scotia's condominium fee structure mark a fundamental shift from a value-based model to a capped per-unit approach. While this reform improves cost predictability for a narrow but important aspect of project approvals, it does not alter the broader financial challenges of condominium development, including land acquisition, construction costs, financing, and presale requirements.

For developers and lenders, the value lies in understanding how this change interacts with the wider cost structure of a project and where it may create opportunities for more reliable budgeting and early-stage planning. Our Real Property Group continues to advise on the full spectrum of development considerations, from navigating the regulatory framework to structuring financing and approvals in today's housing market.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.