9 Toronto Condo Projects Cancelled: CMHC, Urbanation Point to Sales Slump URL

According to recent reports from the Canada Mortgage and Housing Corporation (CMHC) and real estate consultancy Urbanation, Toronto’s condominium market continues to struggle in 2025, with at least nine condo projects cancelled so far this year — and more are likely to follow.

Major Drop in Condo Starts

CMHC’s latest release highlighted that a significant drop in new condo starts was the biggest factor behind an overall decline in housing starts, now at the lowest level since 2009.

Urbanation’s data shows that developers typically need to pre-sell 70% of a building before securing construction financing. Currently, they’re tracking 16 condo projects in Toronto, totaling 5,045 units, that have been on the market for over a year but have sold less than 40% of their inventory.

Michael Niezgoda, senior manager at Urbanation, noted that the current wave of cancellations differs from those in 2017 and 2021, which were often tied to individual developer failures. “Today’s cancellations are more about overall market trends—there’s a lack of buyers and rising construction costs,” he said.

Investors Backing Away from Preconstruction

CMHC noted that investors had been the primary buyers of preconstruction condos in recent years, but declining profitability is pushing them away from the sector.

One example is the stalled 260 High Park Avenue project, where a church was being converted into a 70-unit condo development. Construction began in 2019 but came to a halt in 2023. The development went into receivership and has since been sold to a new developer.

Phil Earnshaw, a buyer who placed a $280,000 deposit in 2018, said: “We knew something was wrong because no one was ever working when we drove by.” Though he and his wife originally intended to rent out the unit before downsizing, he now says, “We’re happy to get our money back. The numbers don’t work anymore.”

For Some Buyers, Cancellation Is a Relief

Real estate lawyer Bob Aaron told CBC that he receives calls every week from buyers looking to exit contracts. “For units purchased during COVID or soon after, prices have come down, and some buyers are relieved the deals fell through,” he said.

He expects sales of preconstruction condos to remain weak for a while but believes the market will eventually rebound: “Real estate always comes back.”

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