That Gorgeous Toronto Condo You Signed Up For? They Just Scrapped It
- Thousands of units were snapped up in pre-sale at lower prices
- ‘At some point the project stops making financial sense’
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Builders in Toronto’s frenzied condo market are walking away from giant towers they have pre-sold, reflecting a rougher road to profits -- and leaving buyers in the lurch.
Soaring construction costs and condo values in Canada’s largest city, where prices have surged amid a booming economy and strong immigration, have spurred developers to cancel projects they started when construction was cheaper and pre-sales were less lucrative. Condo prices have increased about 20 percent since February of last year, according to the Canadian Real Estate Association.