Toronto, Canada’s biggest city, saw last year’s condo sales plunging to the lowest level since 1996 as investors struggled with financing and low prices.
4,590 transactions were recorded in the Greater Toronto Hamilton Area, down 64% from 2023, the third annual drop in a row, according to market research firm Urbanation.
Chart by Urbanation |
Unsold new units in development (including pre-construction, under construction and recently completed projects) reached a record high 24,277 units at the end of last year.
This means that at the 2024 level of sales, it would take 64 months to clear current unsold inventory.
“The new condo market just experienced its toughest year in three decades,” said Urbanation President Shaun Hildebrand.
Expectations for the market remain low this year as investors, the primary driver of presale activity, continue to deal with negative cash flow, difficulties arranging financing and declining prices and rents, he added.
Hildebrand expects the drop in pre-sale activity to continue to cripple construction starts in 2025, causing a substantial decrease in new supply beginning in 2026-2027.
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