For over 30 years, Toronto’s condo market has relied on a unique presale model, requiring developers to sell 80% of units before breaking ground. However, with investor demand at record lows, this system is stalling, threatening a severe housing supply crunch. Experts like CIBC’s Benjamin Tal suggest that the market is at a breaking point, necessitating a transition toward a ‘build-first’ approach—a model common in global cities like Paris and Tokyo. Moving to a model where developers build on spec would shift focus from investor-grade ‘shoebox’ units to larger, high-value homes designed for end-users. While this requires banks and lenders to absorb more risk or rely on institutional partnerships, many industry leaders believe it is the only path forward to stabilize the GTA’s housing future. To understand how this potential shift could reshape your next property search, read the full analysis at The Toronto Star.
Source: Read the original article
