Thinking about getting into real estate in 2025? Pre-construction condos may offer flexibility, customization, and potential upside—but they’re not risk-free. This guide is more human and practical than most, helping you weigh pros and cons like a seasoned strategist.
1. Financial Flexibility & Potential Gains
Staggered deposits let you spread the usual 15-20% down payment over months or even years—less upfront strain.
You may lock in a lower millennial price; if the market rises, your asset appreciates before you even close.
Case in point: Pre-construction condos have yielded over 171% returns in some Toronto scenarios over five years—when timed right.
2. Risks to Be Aware Of
Delays or cancellations can leave your deposit tied up—and even though Ontario law and Tarion protections exist, refunds may be slow.
Costs often exceed expectations: Watch out for interim occupancy fees, unexpected development charges, and rising maintenance fees once the reserve fund kicks in.
Developer reliability matters—poor workmanship and long-term issues have been reported, with limited recourse.
Resale path can be rocky: Assignment sales are possible but complex, and with current market softness, flipping may leave investors underwater.
3. What the Market Looks Like for Pre-Construction in 2025
The average price for new pre-construction condos in Toronto hovers around C$750,000, or about C$1,320 per square foot.
While resale condos are declining (averaging about $682,000, down ~2.6%), pre-construction prices remain stubbornly high.
A large supply glut looms: unsold units are at record levels, weighing on prices—TD projects a 15–20% drop from 2023 peak by end of 2025.
The resale condo market is equally bruised—April to June sales rose slightly, but prices are still trending downward: Q2 2025 resale average was $683,413, down 6.4%.
4. Timing & Strategy — When Could It Make Sense?
If you’re a patient investor with long-term goals (5–10 years), pre-construction may offer greater equity upside—especially in redeveloping or transit-rich areas.
But if you're aiming for a place to live soon or rely on cash flow, resale condos may offer more immediate stability and less risk.
The current condo market favors buyers—ample inventory, slowdown in investor demand, cheaper resale pricing, and weaker rental demand give you negotiation power.
Final Summary
Pre-construction condos offer alluring flexibility and customization—but they come with serious risks: delays, cost overruns, and possible losses from weak resale timing. In 2025, with a soft market and falling prices, they’re a strategic play only for confident, long-term investors. First-time homebuyers or those seeking safety might lean toward resale.
Google Snippets Q&A
How much does a pre-construction condo cost in Toronto?
On average, it’s approximately C$750,000, or around C$1,320 per square foot.
Are pre-construction condos worth it?
They can be—offering financial flexibility, customization, and potential appreciation. But buyers must weigh these against risks like delays, additional fees, and shifting market conditions.
Is selling pre-construction condos in Canada legal?
Yes—selling via assignment sales is legal but depends on builder policies and may involve fees or contractual hurdles.
Is it a good idea to buy a condo in Toronto now?
For buyers ready to close and live in it, yes—it’s a buyer’s market with falling prices, high inventory, and more negotiating leverage.
Are condo prices dropping in Toronto?
Yes. Condo prices are under downward pressure, with resale averaging C$682,000–$683,000 and declines of ~6% year-over-year; TD projects overall drops up to 20% from 2023 peak by year-end.