Completed Condo Inventory Swells to Record High in Q2

TORONTO – July 15, 2025:  Urbanation Inc., the leading source of information and analysis on the condominium market since 1981, released its Q2-2025 Condominium Market Survey results today.

The Greater Toronto Hamilton Area (GTHA) new condominium apartment market produced 502 sales in Q2-2025, continuing to break 30-year lows by declining 10% from Q1-2025 and dropping 69% year-over-year. While Q2 normally represents the strongest period of the year for new condo sales, activity this year was 91% below the 10-year average.

Unsold inventory across all stages of development totalled 24,045 units in Q2-2025, a 3% decline from the record-high reached a year ago and the first reported annual decrease in unsold inventory in more than three years. This occurred as developers continued to pause new condo launches, with only three projects totalling 891 units launched for presales in Q2. As well, a total of four projects (719 units) were cancelled in Q2-2025, bringing the total since the start of 2024 to 21 projects and 4,412 units cancelled. Nine cancelled projects since 2024 are being converted to rental, including three of the cancelled projects in Q2-2025.

The GTHA had a record-high 2,478 new condominium apartments that were completed and available for purchase from developers as of Q2-2025, a 102% increase from a year ago and more than five times higher than the level from two years ago. Note that this figure doesn’t fully account for all completed units that were pre-sold but the purchaser has yet to close. Meanwhile, sales by developers in completed new condo projects totalled 131 units in Q2-2025, resulting in 60 months of supply for standing inventory on the market. Asking prices for completed developer-held inventory averaged $1,212 per square foot (psf) in Q2-2025, down 6% year-over-year and a 16% decline from the market high two years ago.

Among the 4,918 new condo units that reached the occupancy stage in Q2-2025, an 88% share were pre-sold at an average price of $1,187 psf. However, resale selling prices within new buildings registered in the past year averaged $903 psf in Q2-2025, indicating a $284 psf difference between average pre-sale selling prices and current market values for newly completed units. 

A total of 17,117 condos were scheduled for completion during the second half of the year, bringing the total for 2025 to a record-high 31,422 units. Completions are projected to decline to a more historically normal level of 18,037 units in 2026.

Completions are projected to continue trending lower in the post-2026 period due to the drop-off in construction. Condo construction starts totalled 1,276 units in Q2-2025, down 57% from a year ago and a decline of 84% compared to two years ago. The 64,623 units under construction as of Q2-2025 represented a two-year decline of 41,241 units from the record-high of 105,864 units under construction in Q2-2023.

“The market has entered a phase of the downturn that is really starting to wreak havoc. Project cancellations are mounting, construction starts are collapsing, jobs are being lost, buyers are losing a lot of money, and developers are facing difficulties with closings. While a reduction to deliveries next year should help to alleviate some pressure, the near-term will remain very challenging.”

                                                                                          —Shaun Hildebrand, President of Urbanation