HousingNowTO
Senior Member
New pre-construction condo projects are being held back because of low-demand from investors -
"Mr. Iqbal said it is not just borrowing costs that are weighing on buyers: Now that some developers have had to cancel projects or have been taken over by a court-appointed receiver, some buyers are leery about committing to preconstruction condos that are years away from completion.
Preconstruction condo sales began declining last year, when the Bank of Canada started hiking interest rates to get high inflation under control. Although there was a spurt of activity in the spring when the bank took a break from raising rates, it only lasted a few months. The central bank has since raised its benchmark rate twice and has repeatedly said it is prepared to continue doing so if inflation remains elevated.
That has contributed to the slow sales. So far this year, there were 9,568 preconstruction sales, according to Urbanation. That marked the lowest volume in 10 years."
GLOBE - https://www.theglobeandmail.com/bus...ay-launch-of-about-14000-new-condos-as-sales/
