Numerous Toronto Condos Just Sitting On Market
A notable number of Toronto condo projects are now indefinitely paused. While there's a resurgence in demand for single-family homes and resale condos, new condo sales are dropping sharply, leaving developers in a tough spot.
Recent reports show that 60 condo communities, expected to open in the last two years, are now on hold indefinitely, totalling over 21,000 units. This sales downturn is severely impacting construction, with developers struggling to secure financing.
Pre-construction condo prices in the Greater Toronto Area dropped by 15% in the last quarter of 2024, as sales hit their lowest point in nearly 30 years. Consequently, construction starts have fallen by 52% compared to last year, with around 91,590 units in various stages of completion.
Although most new condo developments are in the 905 area, hopes are on lower mortgage rates to boost activity. However, challenges remain as the industry deals with existing inventory and evolving government policies.
In conclusion, the Toronto condo market faces unprecedented challenges, requiring resilience and adaptability from developers and stakeholders to overcome them.
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