The Toronto preconstruction condo market is undergoing a major transformation. With new condo sales dropping by 64% in 2024, prices fluctuating, and developers facing increased accountability, buyers and investors must stay informed to make strategic investment decisions.
In this blog, we break down the latest trends, key statistics, and insights that will shape the 2025 condo market, helping you navigate opportunities and risks effectively.
The GTA condo market has seen a dramatic change over the past year, reaching its lowest sales level since 1996. Several factors, including higher mortgage rates, investor hesitancy, and supply-demand fluctuations, have contributed to this shift.
📉 Key Highlights:
New condo sales fell by 64% in 2024, reaching only 4,590 units, the lowest in nearly three decades.
Preconstruction condo prices have declined by an average of 7.3%, particularly in Toronto’s urban core.
Buyer confidence has weakened, leading to a slowdown in new project launches.
📌 What This Means: The market is shifting from a seller’s market to a buyer’s market, where negotiation power is back in the hands of purchasers.
🔗 Related Read: How to Choose the Right Condo Developer – Learn how to pick the most reliable builders in a changing market.
To better understand the market, let’s look at the numbers:
📊 Toronto Condo Sales Decline:
In 2023: 12,750 new condo sales
In 2024: Only 4,590 new condo sales (-64% Drop)
🏢 Price Trends:
The average asking price per sq. ft. dropped from $1,689 in Q3 2022 to $1,524 in Q4 2024.
Forecast for 2025: Expected to drop further to $1,425 per sq. ft.
👥 Developer Accountability:
96% of GTA residents believe developers have a responsibility to ensure high-quality construction.
Increased buyer scrutiny means choosing a trusted developer is more critical than ever.
📌 Why This Matters: Lower prices present an opportunity for buyers, but investors must choose projects wisely to avoid developer risks and delayed construction timelines.
🔗 Check Out: The Top Benefits of Investing in Preconstruction Condos – See why preconstruction condos remain a long-term wealth-building strategy.
3. What This Means for Buyers & Investors
🏡 For Homebuyers: ✔ More room to negotiate better prices & incentives.
✔ Preconstruction condos may offer long-term value as demand eventually rebounds.
✔ Selecting reputable developers is crucial to ensuring timely delivery and quality.
📈 For Investors: ✔ Potential high appreciation value in the long run. ✔ Strong rental demand remains in key locations like Downtown Toronto, Etobicoke, and Vaughan. ✔ Lower unit prices mean higher entry affordability for those waiting on the sidelines.
📌 Action Step: Conduct thorough due diligence before committing to any preconstruction condo project.
🔗 Next Read: Buying vs. Selling in Canada’s 2025 Market – Find out if now is the best time to buy or sell property.
💡 Market Forecasts:
The resale condo market is expected to recover first, with preconstruction inventory taking longer to absorb.
Developers may slow down new projects, limiting supply and eventually driving prices up.
More government regulations & housing affordability incentives could reshape buyer behavior.
📌 What This Means: While 2025 offers great buying opportunities, expect a more competitive landscape as the market stabilizes in the coming years.
🔹 Choose Trusted Developers: Work with companies that have a proven track record and financial stability.
🔹 Location Still Matters: Invest in high-growth, transit-accessible neighborhoods.
🔹 Monitor Market Trends: Keep an eye on interest rates, demand shifts, and price forecasts before committing.
📌 Final Thought: The Toronto preconstruction condo market is shifting, but for savvy investors and buyers, this presents an excellent time to enter the market at lower prices and with stronger negotiation leverage.
At Royal Realty, we specialize in helping clients navigate the changing real estate landscape. Our expertise in Toronto’s preconstruction condo market ensures that you make the best investment choices for your future.
📩 Want exclusive insights on top preconstruction projects? Contact us today for a personalized consultation.
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