Toronto Developers Postpone Launch of 14,000 New Condos as Sales Decline

Toronto developers have delayed the launch of nearly 14,000 condo units this year due to waning demand, higher borrowing costs, and economic uncertainty. Sales of preconstruction condos have slowed significantly as interest rates have climbed, pushing up costs for both buyers and builders. Developers were expected to launch at least 27,000 units in the Toronto region, but as of the end of September, only about 13,000 had been launched, leading to the weakest sales activity in a decade.

The slow sales have been attributed to various factors, including higher borrowing costs and the cancellation of projects by some developers. In the third quarter, only 42 percent of the condo units launched were sold, well below the levels seen before interest rates started rising in March 2022. Higher borrowing costs have also become a problem for developers, who are dealing with a spike in construction expenses. Residential building costs have risen 55 percent since the start of the pandemic due to material and labor shortages