Toronto's condo market 'a ghost town'

Pre-construction sales plummet as buyers shy away from smaller-sized units built for investors

- DIANA ZLOMISLIC

At the end of May, Greater Toronto had the highest number of condos for sale for any month in recent history with 8,183 apartment units on the market. The last highest number of active condo listings was 7,600 in October 2020.

In the thick of a housing crisis, there is suddenly a record number of homes for sale in Toronto that nobody wants.

Near Jarvis and Dundas streets, realtor Jamie Page warned his clients two months ago that their condo’s unobstructed lake views, designer credentials and a balcony might not be enough to quickly bait a buyer. He’s not happy to be right. At the end of April, they dropped the price by $21,000 to $589,900 for 550 square feet, which is below average for that size and location. Still, no bites. Not even a showing.

“The condo market right now is a ghost town,” said Page. “I have zero action.”

With the city facing an ongoing housing affordability crisis, a record number of condominium apartments, generally the most affordable form of housing, has flooded the city’s housing market.

The homes up for grabs are typically smaller-sized units that were built for investors like Page’s clients who are trying to cash out before their profit margin disappears.

Some realtors and politicians say the flatlining of Toronto’s condo market is proof the provincial government’s attempt to fix the housing crisis has backfired because it has catered to developers, investors and speculators instead of ordinary people who need somewhere affordable to live.

“Something is wrong with the market when we have housing nobody wants and homelessness at the same time,” said Coun. Gord Perks, chair of the City of Toronto’s planning and housing committee.

At the end of May, Greater Toronto had the highest number of condos for sale for any month in recent history with 8,183 apartment units on the market. The last highest number of active condo listings was 7,600 in October 2020.