Toronto’s new condo market is facing a dramatic slowdown. According to the latest Q2 2025 data from Urbanation, only 502 new condos were sold across the Greater Toronto and Hamilton Area (GTHA), marking a 30-year low and a 70% drop compared to the same period last year. This is especially striking given that Q2 is traditionally the busiest season for new condo sales.
This downturn isn’t just about fewer sales. It reflects a broader hesitation in the development industry. Developers have pulled back on launches, with only three new projects (totalling 900 units) launched in Q2 and four others (719 units) canceled altogether. Since 2024, over 4,400 units across 21 projects have been canceled, with many now being repositioned as rental properties.
Why Aren’t Condos Selling?
There’s a growing disconnect between what’s being built and what buyers are actually looking for. Many pre-construction units are small, high-priced, and lack functional layouts. Buyers today are more value-conscious—they're looking for livable space, not just flashy finishes. The average buyer isn’t looking for a 400-square-foot one-bedroom-plus-den. Instead, they want 600+ square feet that can comfortably support day-to-day living, even for a couple.
And price remains a key factor. New builds are being pre-sold at an average of $1,180 per square foot, while resale units in the same buildings are trading for about $903. That’s a gap of $284 per square foot—highlighting how current presale prices are failing to provide real value when compared to existing inventory.
What About Assignments?
Assignment sales (reselling a pre-construction contract before occupancy) have surged, but even here, value is questionable. While buyers may be able to purchase assignments below their original purchase price, these units often don’t stack up well against resale alternatives in terms of layout or square footage.
What’s the Long-Term Risk?
If developers continue to pause projects, Toronto may face a shortage of new inventory in four to five years. At the same time, the cost of building larger, family-friendly condos is often prohibitively high. For example, a 1,000 sq. ft. unit at $1,200 per sq. ft. would price out at $1.2 million—and that’s before parking or fees. If buyers with that kind of budget opt for freehold homes instead, the demand for such large condos might never materialize.
This raises a critical question: Who are these condos really being built for?
The next few years will be telling. Developers may be forced to rethink design, pricing, and the overall value proposition of new condos. Buyers, on the other hand, should continue to focus on functionality and long-term livability.
As Toronto continues to evolve, aligning development with real buyer demand—not speculative pricing—will be key to restoring balance in the market.
This downturn isn’t just about fewer sales. It reflects a broader hesitation in the development industry. Developers have pulled back on launches, with only three new projects (totalling 900 units) launched in Q2 and four others (719 units) canceled altogether. Since 2024, over 4,400 units across 21 projects have been canceled, with many now being repositioned as rental properties.
Why Aren’t Condos Selling?
There’s a growing disconnect between what’s being built and what buyers are actually looking for. Many pre-construction units are small, high-priced, and lack functional layouts. Buyers today are more value-conscious—they're looking for livable space, not just flashy finishes. The average buyer isn’t looking for a 400-square-foot one-bedroom-plus-den. Instead, they want 600+ square feet that can comfortably support day-to-day living, even for a couple.
And price remains a key factor. New builds are being pre-sold at an average of $1,180 per square foot, while resale units in the same buildings are trading for about $903. That’s a gap of $284 per square foot—highlighting how current presale prices are failing to provide real value when compared to existing inventory.
What About Assignments?
Assignment sales (reselling a pre-construction contract before occupancy) have surged, but even here, value is questionable. While buyers may be able to purchase assignments below their original purchase price, these units often don’t stack up well against resale alternatives in terms of layout or square footage.
What’s the Long-Term Risk?
If developers continue to pause projects, Toronto may face a shortage of new inventory in four to five years. At the same time, the cost of building larger, family-friendly condos is often prohibitively high. For example, a 1,000 sq. ft. unit at $1,200 per sq. ft. would price out at $1.2 million—and that’s before parking or fees. If buyers with that kind of budget opt for freehold homes instead, the demand for such large condos might never materialize.
This raises a critical question: Who are these condos really being built for?
The next few years will be telling. Developers may be forced to rethink design, pricing, and the overall value proposition of new condos. Buyers, on the other hand, should continue to focus on functionality and long-term livability.
As Toronto continues to evolve, aligning development with real buyer demand—not speculative pricing—will be key to restoring balance in the market.
