The first half of 2025 revealed contrasts within Canada’s high-end housing market, as luxury and ultra-luxury segments responded differently to current real estate and macroeconomic factors. According to Sotheby’s International Realty Canada’s Top-Tier Real Estate: 2025 Mid-Year State of Luxury Report, while national consumer confidence reached record lows amid escalating Canada–U.S. trade tensions and mounting uncertainty, select premium markets demonstrated unexpected resilience, particularly in the ultra-luxury tier.
Nationally, luxury real estate, typically defined by properties priced over $1 million, experienced a drop in activity. High housing costs in Toronto and Vancouver, combined with global volatility and sluggish employment growth, suppressed sales and dampened sentiment. Nonetheless, key markets like Montreal, Calgary, and ultra-luxury pockets in Toronto remained comparatively strong performers.
Despite a 23% decline in sales over $1 million and a 28% drop in properties sold over $4 million in the GTA during the first half of 2025, the ultra-luxury market, defined as including properties over $10 million) surged. Twelve properties sold above this threshold, or triple the number from the same period in 2024, all involving single-family homes. Within the City of Toronto itself, seven properties over $10 million sold on MLS, more than double last year’s figure.
However, the actual number of ultra-luxury properties sold may be even higher; Sotheby’s experts also reported increased ultra-luxury sales occurring off-market, reflecting both privacy concerns and confidence among ultra-high-net-worth buyers. Single-family homes accounted for 88% of all GTA luxury sales over $4 million.
Montreal emerged as one of the most stable luxury markets nationwide. Residential sales over $1 million rose 26% year-over-year, while those over $4 million climbed 22%. Detached homes accounted for 42% of luxury sales, with a 67% jump in single-family sales over $4 million. The city’s benchmark home price, meanwhile, remains accessible relative to Toronto and Vancouver, and declining interest rates released pent-up demand.
Calgary’s luxury market continued its steady ascent. While sales above $1 million rose modestly by 3%, transactions over $4 million jumped 43% year-over-year.
Vancouver’s luxury sector continued to underperform, however. According to Sotheby’s, luxury home sales over $4 million fell 51% year-over-year. Only two ultra-luxury homes sold in the first half of 2025, down from seven in 2024. Despite stabilizing rates, Vancouver’s extreme housing prices and deteriorating buyer confidence entrenched buyer’s market conditions.
If you are renting out a property, or even part of your home, you may not think of yourself as a landlord, but your insurance company does. Renting out part of your home, including a basement suite, or deciding to lease your property while living elsewhere, means you need to reconsider your insurance; even occasional or informal rental arrangements change the rules.
Many Canadians in these situations, however, assume their homeowners’ insurance still applies, unaware that renting to a tenant, no matter how casually, requires different coverage.
In some cases, becoming a landlord wasn’t planned, such as when inheriting a family property or needing to relocate temporarily and choosing to rent out your home in the meantime. Others may just be helping someone out with affordable accommodations. These “accidental landlords” still need to adjust their coverage. Failing to update your policy and failing to notify your insurer can leave you exposed to denied claims, voided coverage, or costly legal and financial risk.
A homeowner’s insurance policy is built for owner-occupied residences, not income-generating rental properties. Once a tenant moves in, even part-time or in a basement suite, you’ve changed how the property is used, and that changes what the insurer is willing to cover.
Without notifying your provider and switching to the proper policy, you’re at serious risk of:
Canadian insurers consistently advise that renting a property, even temporarily, without proper disclosure can invalidate coverage.
Your needs change when you become a landlord.
If a tenant’s guest slips on the walkway or injures themselves on a faulty stair, you could be held liable. Your homeowners’ liability policy might not apply once the property is tenant-occupied. Landlord liability insurance steps in with legal expense and injury settlement coverage tailored for tenant-related claims.
Eviction, unpaid rent, lease violations are legal and financial issues that can arise. Legal expense insurance, included in some landlord policies or available as an add-on, helps with the cost of pursuing or defending legal action against tenants. Some providers offer access to a 24/7 legal advice line.
If you leave behind appliances, furniture, or other non-fixed items, your homeowners’ policy may cover them under personal property. Once the property is rented, only items owned by the landlord and specifically declared may be covered, and only under a landlord policy.
Even if you are an ‘accidental landlord’, you are likely to start counting on receiving rental income, and will need it to compensate for the additional expenses experienced when renting. If your tenant has to move out after a fire or a burst pipe, you won’t just deal with repairs—you’ll lose rental income. Homeowners’ policies don’t cover that. Landlord insurance includes fair rental value coverage, which replaces that lost income while the unit is uninhabitable due to a covered loss.
Renting out your home on Airbnb while you travel? Letting a friend of a friend live in the home while you’re away? These situations seem casual, but they trigger major coverage issues if your insurer isn’t informed. Temporary arrangements still count as tenant occupation.
Tip: For those renting their home for short-term rentals like Airbnb, Airbnb insurance is available, and tailored to this situation.
Many assume their homeowners’ policy provides all the coverage they need if they are just renting out a basement suite or room, and still living in the property, but landlord coverage that addresses the tenant’s share of occupancy and risk is still needed.
Renting out an inherited home, or a house you can’t sell right away? These often start as short-term arrangements but fall into landlord territory.
Tip: A vacancy of more than 30 days without notifying your insurer may also reduce or void your existing coverage.
If you are charging rent, contact your insurance provider before tenants move in. Ask whether your current policy can be amended or whether a landlord-specific policy is required.
Zensurance offers landlord insurance policies tailored to both full-time and part-time landlords, with flexible options for:
Plans start as low as $19/month, with available add-ons for legal expenses, flood and sewer backup, equipment breakdown, and more. Zensurance helps ensure your policy matches how the property is actually being used, so you’re not left unprotected when it matters most.
Renting out a property, whether long-term or just while you’re away, changes your insurance needs in ways that homeowners policies aren’t designed to handle. Protecting yourself starts with understanding those differences.
* Issuance of coverage is subject to underwriting by the respective insurance company. The final insurance premium is established, and insurance coverage is offered by the insurance company only after underwriting is completed.
Please note this article contains affiliate links. We may receive compensation for referrals and purchases made through these links.
Canada’s housing starts in June 2025 reveal pronounced regional contrasts and shifting construction patterns that define the current market landscape. While the six-month moving average showed a modest 3.6% increase, the detailed figures expose significant variation in both housing types and geographic areas.
Source: CMHC
Nationally, single-detached housing starts remained relatively stable, with some provinces reporting gains while others, including Ontario, saw declines. Multi-unit starts showed volatility from month to month, complicating short-term supply forecasts and emphasizing the value of trend-based analysis.
For the period of January to June 2025 compared to the same period in 2024, the strongest growth in housing starts was concentrated in Saskatchewan, Québec, and Alberta. Saskatchewan led with an 84% increase year-over-year, driven largely by new single-detached homes and purpose-built rentals. Québec also showed substantial growth, with a 35% rise in starts, reflecting increased activity outside its largest urban markets. Alberta experienced solid growth as well, with starts up 30%, supported by both single-detached and multi-unit construction.
When looking at total housing starts by volume over the same periods, Alberta ranked highest with nearly 28,000 units started in June, reflecting both its growth and size. Québec followed closely, while Ontario remained a major contributor to Canada’s housing supply despite an overall decline in starts. Ontario’s large population base means its absolute numbers remain significant, even as growth slows. These trends illustrate how expanding construction in smaller and mid-sized markets is helping to offset weaker housing activity in Canada’s largest urban centres.
Source: CMHC
In contrast, the country’s two largest metropolitan markets, Toronto and Vancouver, continue to face steep declines. Although they continue to have the most starts in terms of total volume, they are decreasing compared to the same period in 2024. Toronto’s housing starts dropped 40% year-over-year in June 2025, mainly due to a sharp fall in multi-unit construction, especially condominiums. Vancouver’s total starts fell 11% year-over-year for the period of January to June 2025 compared to the year before, despite a strong monthly rebound driven by multi-unit projects. This ongoing slump in condo development highlights persistent challenges in these key urban markets.
Among cities, for the year to date data as of June 2025,Abbotsford–Mission stands out with a remarkable 130% increase in housing starts, compared to the year before, largely due to a surge in multi-unit projects. Ottawa also showed strong growth at 82%, driven by gains in multi-unit housing. Calgary and Montreal posted more moderate increases.
Overall, Canada’s housing market in June 2025 showed growing activity in the Prairies and Québec, stability in single-detached housing, and continued decreases in major urban condo markets.
Century 21 Canada has announced a new partnership with Calgary-based proptech company Propra, taking a step toward modernizing property management across its national network.
The collaboration will give Century 21 offices across the country access to Propra’s full suite of tools, with the goal of simplifying operational processes and improving day-to-day efficiency in managing rental properties.
Propra was selected for its modern interface, alignment with Canadian regulatory requirements, and built-in rent collection capabilities, according to Century 21 Canada. The software offers accounting automation, communication tools, and resident management features designed to support a range of operations, from small-scale owners to larger property management teams.
“Propra stood out as a forward-thinking partner with a proven ability to meet the complex needs of property managers in Canada,” said Todd Shyiak, Executive Vice President of Century 21 Canada. “Their platform aligns with our vision to support our offices with tools that are powerful and easy to adopt and scale.”
Founded in 2021, Propra focuses on building property management infrastructure tailored to Canadian operators. It has developed a browser-based platform that includes features like journal entry automation and e-transfer parsing, with recent updates incorporating AI to streamline these processes further. The company’s broader aim is to improve transparency, reduce manual work, and support a better experience for residents and owners alike.
Century 21 Canada is part of the CENTURY 21® global network, the world’s largest residential real estate sales organization. The brand has a longstanding presence in Canada, with a history of supporting entrepreneurship, marketing innovation, and homeowner education. Globally, CENTURY 21® includes approximately 7,330 independently owned and operated franchises.
The partnership represents a notable step for both organizations. The rollout is expected to begin in the coming months.
As part of a broader strategic push to catalyze growth and long-term vibrancy in its downtown and surrounding neighbourhoods, the City of Regina has introduced the City Centre Incentive Program (CCIP). This initiative consolidates various financial tools into a unified structure intended to reduce barriers to urban reinvestment. With a focus on activating vacant land, modernizing building stock, and attracting new commercial tenancy, the CCIP intends to reshape the physical and economic character of Regina’s city centre in ways that align with long-term planning goals.
The CCIP offers two primary streams, including grant incentives and tax exemptions, both of which are tailored to support different types of development and improvement. These are aimed not only at encouraging capital improvements but also at helping overcome some of the friction typically associated with downtown redevelopment, such as aging infrastructure, fragmented property ownership, and soft commercial demand.
Grants are intended for smaller-scale interventions that have immediate visual or economic impact, including enhancements to storefronts and interior fit-ups for new tenants. Tax exemptions, on the other hand, apply to larger undertakings, especially the redevelopment of long-vacant lots within designated boundaries. There is flexibility to apply either stream based on project scale so the city can attract both incremental upgrades and more ambitious construction.
For projects involving the redevelopment of currently vacant lots, the CCIP provides a property tax exemption for up to five years. This applies to municipal, library, and education portions of the tax levy. There is no fixed dollar cap; the value of the exemption is tied to the assessed value of the completed property.
This stream is meant to address one of the most persistent urban challenges: the long-term vacancy of centrally located parcels. By reducing the carrying cost burden during the initial years after development, the program effectively lowers the total project risk profile. This can be particularly relevant in a context where lease-up timelines may be extended or where construction costs remain elevated.
Approval for this exemption requires a formal process involving both City Council and provincial consent. This added level of oversight ensures that public support is reserved for projects that deliver measurable benefit in terms of land use, design quality, and economic contribution.
Under the grant component, funding is available to cover 50% of eligible project costs, up to a maximum of $50,000. The two categories of storefront improvement and tenant fit-up are designed to enhance street-level activity and encourage business density within the core.
The storefront improvement stream targets exterior upgrades such as façade restoration, signage, lighting, and window enhancements. These changes are often crucial to activating pedestrian-level interest and making the area more attractive to visitors and residents. The tenant fit-up stream, meanwhile, is available exclusively for new tenants undertaking interior renovations, with a specific emphasis on first-time occupiers of previously underused commercial spaces.
This approach supports the city’s goal of reducing downtown vacancy rates and promoting economic diversity, particularly by incentivizing new retail, service, or office uses. However, existing tenants expanding or reconfiguring their space are not eligible, ensuring that funds are directed toward net new occupation and activation.
The program targets a defined area in and around Regina’s city centre, with projects evaluated through a scoring system that prioritizes key corridors, underused lots, and alignment with city planning goals. Developments that enhance walkability, urban design, or mixed-use density receive higher rankings. This ensures the incentive acts not just as financial support, but as a tool for guiding strategic revitalization.
Applicants must demonstrate both site control (ownership or lease agreements) and project readiness. Supporting documentation includes detailed plans or renderings, cost estimates from licensed contractors, and photographs of existing conditions. There is a fixed application window up to August 20, 2025, with reviews conducted on a first-come, first-served basis until allocated funds are exhausted.
The CCIP is part of a broader municipal approach to intensification and urban revitalization. It complements other policy initiatives such as the Intensification & Revitalization Incentive Programs, which target residential redevelopment, and the Housing Incentives Policy, which encourages multi-unit construction on infill lots. Recent zoning reforms, including the removal of parking minimums and streamlined permitting for multiplex housing, also reflect a city-wide commitment to core-area regeneration.
More details can be found at the City of Regina’s official City Centre Incentive Program page.
The City of Edmonton has approved a series of targeted zoning amendments aimed at improving the design and functionality of row houses in the RS (Small Scale Residential) zone. Passed at the June 30, 2025, public hearing, these changes form part of the city’s broader efforts to enhance the quality of infill development, following up on the large-scale zoning overhaul that came into effect in January.
The new regulations are now in force and apply immediately to all new development applications within the RS zone.
The approved amendments focus on mitigating common concerns around massing, privacy, and design uniformity in mid-block row housing. One of the most significant changes is the reduction of allowable building length along interior side-lot lines. Structures are now limited to either 50% of the lot depth or 25 metres, whichever is less, down from the previous 30-metre maximum. This is intended to minimize visual bulk and overshadowing on neighbouring properties.
Other updates include a new restriction on the number of side-yard entrances. A maximum of two entrances per side lot line is now permitted, including all front, rear, and mechanical access points. In tandem, the city has increased minimum interior side setbacks from 1.5 to 1.9 metres when a side entrance is present. These adjustments are designed to improve walkability, reduce conflicts in shared yards, and maintain better spatial separation between buildings.
New rules also affect stair placements. Exterior staircases facing interior side-lot lines must be offset by at least 1.1 metres from the property line. This is expected to enhance safety and accessibility while preserving unobstructed movement along side yards.
Importantly for investors, council also considered a motion to reduce the maximum number of dwelling units permitted on RS-zoned lots from eight to six, but the motion was ultimately defeated, leaving the eight-unit cap intact for now. However, Council has instructed city administration to continue monitoring the issue and return with further analysis. Broader community consultation on density limits is expected to be part of the city’s long-term zoning review, with additional discussions possible as 2027 approaches.
Beyond massing and layout concerns, the amendments introduce stronger requirements for facade articulation. Developers must now incorporate at least two architectural techniques, such as material variation, vertical projections, or roofline modulation, on the sides and front of row houses. Street-facing units must also include a covered entrance and a minimum of 15% window glazing above the foundation level. These changes aim to enhance curb appeal and break up the repetitive, monolithic appearance often seen in row housing developments.
While the changes primarily affect row houses, they will also apply to other housing forms permitted within the RS zone, as Edmonton’s zoning rules are form-based rather than tenure- or ownership-specific.
While the new rules are not changing the existing eight-unit limit, they do impose design restrictions that could affect how those eight units are configured or designed on a given site. Fitting the maximum eight units within the new setback, entrance, and articulation constraints may require adjustments to building plans, especially for those using prefabricated or repeatable designs. The updated requirements could result in increased design and construction costs in some cases, but they also have the potential to improve resale appeal and long-term marketability.
For investors and builders active in Edmonton’s infill market, adapting to these new parameters will be essential to ensure compliance and continued project viability. While the regulatory environment is tightening around certain design aspects, the broader framework remains supportive of gentle density and missing middle housing across the city’s established neighbourhoods.
Further zoning discussions, including potential adjustments to density caps and additional form-based refinements, are expected in the coming years as part of Edmonton’s continuing evaluation of its new bylaw framework.
Burnaby is in the middle of a comprehensive zoning bylaw rewrite, the first full replacement of its development regulations since 1965. The city is responding to a combination of new provincial housing legislation and its own long-term planning priorities under the Burnaby 2050 Official Community Plan, which is expected to be adopted later this year. Together, these reforms are reshaping land use regulations across the city, with significant implications for what can be built in the city, where, and under what conditions. As Vancouver’s neighbour and part of the Metro Vancouver regional district, these changes could have broader impacts beyond the city, as well.
The process began in late 2023, and major changes are already in effect as of mid-2024. The remaining components of the rewrite, including full implementation of new residential and commercial zones, will be rolled out through the rest of 2025.
One of the most immediate changes came with the creation of the R1 Small-Scale Multi-Unit Housing (SSMUH) District. Adopted by Council on June 10, 2024, and taking effect as of July 1, this district replaced all previous low-density residential zones in Burnaby with a single, unified zoning designation.
Under R1 SSMUH, standard residential lots throughout the city now allow between three and six units, depending on lot size and proximity to transit. Lots smaller than 280 square metres allow up to three units, while those 280 m² or larger may have up to four. On lots within 400 metres of frequent transit, including SkyTrain stations and major bus routes, up to six units are permitted. These changes were made in direct response to provincial housing legislation passed in late 2023, which requires municipalities to legalize three to six units on previously single-family lots.
Burnaby’s approach goes beyond the minimum requirements by applying uniform regulations across the city. Former zones such as R2, R4, and R9 are no longer in effect, and development under the new R1 rules no longer requires rezoning.
Another major change concerns areas near rapid transit. In line with provincial directives, Burnaby has designated Transit-Oriented Areas (TOAs) where mid- and high-rise residential development must be permitted as-of-right. These areas are defined by a 200-metre radius for mid-rise (8 storeys) and a 400-metre radius for high-rise (20 storeys) development, measured from designated transit hubs.
As of late 2024, the city has removed residential parking minimums within TOAs, consistent with provincial legislation. This applies to new development near major SkyTrain stations and key bus corridors. The goal is to reduce development costs and support transit use, but it also removes a long-standing constraint on project form and feasibility in these zones. In addition, municipalities are no longer permitted to hold public hearings for residential developments that comply with the Official Community Plan, streamlining approvals further.
In October 2024, Burnaby approved a shift from floor area ratio (FAR) rules to height-based zoning. This was formally implemented in June 2025 with new R2 to R8 residential zones and two mixed-use zones, CM1 and CM2. These zones regulate buildings by height, setbacks, and site coverage instead of floor area limits, aiming to simplify approvals and provide more clarity on what can be built.
The new districts are gradually replacing older RM and C zones. Until the Burnaby 2050 Official Community Plan is adopted later this year, some properties will still follow legacy designations, but full alignment is planned.
Burnaby’s Official Community Plan is being updated in parallel with the zoning rewrite. A full draft of the Burnaby 2050 plan was released in April 2025, including new land use designations for all properties, updated development permit guidelines, and revised policies on mobility, infrastructure, and climate adaptation.
The OCP is expected to be finalized in late 2025. Once adopted, it will serve as the basis for all future land use decisions, including zoning, subdivision, and infrastructure investment. It will also clarify how neighbourhood-level policies and growth targets apply under the city’s new regulatory framework.
With the multiplex permissions now in effect across all residential neighbourhoods, the removal of parking minimums in transit areas, and the introduction of a new height-based zoning framework, Burnaby’s development environment is changing. These changes are being phased in over two years, from mid-2024 through late 2025, and will fully align with the Burnaby 2050 Official Community Plan once adopted.
Anyone involved in land use planning or development in Burnaby will need to account for the new zoning structure, upcoming OCP land use designations, and ongoing adjustments to amenity funding and servicing standards. The implications vary by site, but the direction is citywide: more units, more height, and fewer procedural barriers in areas targeted for growth.
Dunpar milestone was marked this month by Dunpar Homes as they celebrated the “Topping Off” of their second midrise luxury purpose built rental building at 26 Earlington – part of the Kingsway Village Square community in Etobicoke. The Topping Off of a building is the recognition and thank you to the many tradespeople that have taken the new structure from excavation to the very top. These people have worked through the challenging climate elements from January to December to reach this pinnacle. Now the finishing of the exterior and interior takes place.
It was just last July that Dunpar began the process of building 26 Earlington when they celebrated the groundbreaking of the building and in less than a year, they have reached this high point! Over 150 people from excavators to formworkers to electricians to welders to pipe fitters and many more, were all a part of bringing this building to the top in record time.
“Building the structure to this point has truly been a team effort and we are excited to move indoors and start the finishing,” said Taylor Rogers, Project Director for 26 Earlington. “We anticipate that the first people will be moving in to live here by next spring 2026.”
26 Earlington will have 141 suites including 12 two storey penthouse apartments, an elegant party room, patio with barbeque, 24/7 concierge, pet spa and self-car wash. Key to this building will be provision for 28 EV vehicles with the power for the cars coming from solar panels that will be stationed on the roof of the building; this is just one of the energy saving ways that Dunpar has planned for this property.
“We have found that there are many people that want to scale down from a larger home and live the carefree life of renting rather than ownership or the young professionals that are looking to rent until they save enough for a down payment on a home,” remarks Harpreet Bassi, Vice President of Finance for Dunpar.” Our first rental building just west of this one was leased up quickly and it is our belief that 26 Earlington will see the same appeal for those and others.”
Cynthia Del Peschio, Manager of Sales for Dunpar, said many people have chosen Kingsway Village Square to be their home explaining, “The Kingsway is one of the city’s top destinations, thanks to its boutique shopping, wealth of dining options, coffee houses, pubs, a retro cinema and several of Toronto’s finest spas and salons. Some of the city’s best schools, from middle schools to high schools, are in this neighbourhood as well.”
Dunpar Homes has been building classic, luxury townhome communities for over 40 years across the GTA yielding more than 2,000 homes. The company has branched into developing purpose-built rental buildings like Kingsway Village Square and now 26 Earlington, for those seeking to rent rather than buy. Adhering to their strict design criteria, Dunpar recently branched out and introduced Jutland Square, their first office condominium ideally located by the QEW and Hwy 427.
Pre-construction condo purchases offer investors and homebuyers unique advantages, such as price appreciation before occupancy, modern layouts and extended timelines for financing, but they also come with risks and a different negotiation process compared to resale properties. In Canada’s highly active condo markets, particularly in cities like Toronto, Vancouver, Montreal, Calgary and smaller urban centres undergoing densification, effective negotiation can impact not just the price but also deposit structures, upgrades and protections. While many buyers assume pricing and terms are non-negotiable, there is often more flexibility than developers advertise, especially in slower markets or phases nearing sellout.
Unlike resale transactions, where buyers negotiate directly with sellers, pre-construction purchases are made from developers, usually with fixed price lists, marketing incentives and specific contract terms. These sales are governed by provincial legislation: Ontario’s Condominium Act, British Columbia’s Real Estate Development Marketing Act (REDMA), Alberta’s Condominium Property Act, and equivalents in other provinces. These frameworks require disclosures, cooling-off periods, and protections for deposits held in trust.
Buyers typically sign an Agreement of Purchase and Sale (APS) during a project’s early phase. At this stage, the base price and standard terms are presented as fixed, but many aspects may still be negotiable.
The APS contains important details about the unit, construction timelines, delay provisions, interim occupancy, final closing and costs. Buyers should always have a full review of the APS conducted by a real estate lawyer with experience in pre-construction transactions. Lawyers can flag potential issues such as uncapped levies, excessive assignment fees or one-sided cancellation clauses.
Buyers may also attempt to amend or add clauses during the negotiation phase. Common areas of negotiation include:
While not all developers will accept changes, some will, especially if the project is nearing its sales target or the buyer is purchasing multiple units.
Developers may adjust prices over time as construction milestones are met. In slower markets or during launch periods, buyers may negotiate price reductions, particularly if they are purchasing multiple units or working with a seasoned real estate agent familiar with the developer’s track record.
More commonly, developers offer non-price incentives instead of direct discounts. These may include waived or capped development levies, free parking or locker units, upgraded appliances or finishes, or a year of free maintenance fees. These incentives can be strategically negotiated to offset costs that would otherwise add significantly to the final price.
Deposit structures are among the most negotiable aspects of pre-construction purchases. Buyers facing liquidity constraints may be able to negotiate a slower payment schedule or a reduced total deposit, particularly in markets with high inventory or when the project is nearing completion.
Investors may sometimes be able to negotiate back-loaded deposits, such as 5% immediately and 10% at occupancy, or extended timelines, such as 1% per month over 15 months. First-time buyers may also qualify for more lenient terms. Having a real estate agent who regularly works with pre-construction projects is critical in identifying which developers are open to such flexibility.
Another area for negotiation is the right to assign the unit before closing, which is a valuable option for investors who may want to sell the contract before occupancy. Developers often restrict assignments to control resale activity and pricing, and typically charge fees to allow them. Buyers can negotiate to include assignment rights at a reduced or waived fee and to ensure they can assign at market value without restrictions.
Some developers now include clauses restricting short-term rentals or assignments to corporate entities. These terms can affect investment viability and should be addressed early.
Final closing costs are often underestimated by pre-construction buyers. They include land transfer taxes, legal fees and ’adjustments’ such as meter installations, levies and Tarion warranty enrollment. While these are detailed in the Disclosure Statement and APS, the amounts can be vague or uncapped. Negotiating a cap on closing adjustments can prevent unexpected financial strain.
Negotiating a pre-construction condo purchase requires an understanding of the legal framework and other areas with the greatest financial impact. Working with professionals who can advocate for the buyer is critical.
Legal counsel is important. Pre-construction agreements are lengthy, developer-drafted contracts that favour the builder. A lawyer can ensure the buyer’s interests are protected and that any negotiated changes are clearly documented before the rescission period ends.
Using a real estate professional with experience in the pre-construction market and strong relationships with developers can make a significant difference in negotiation outcomes. Some have access to ‘insider’ or VIP pricing and are more likely to be aware of developer incentives not advertised publicly. Additionally, developers may be more open to concessions when approached through trusted professionals who can bring repeat buyers or referrals.
When looking at a pre-construction property as an investment opportunity, the right real estate professional becomes even more essential. RLP InvestorsEdge™ connects investors with highly trained professionals who know how to negotiate on their behalf for better deals and discounts, while protecting their interests. These professionals can secure more favourable terms for buyers while mitigating common risks inherent to off-plan purchases.
The Toronto rental market entered 2025 with mixed signals, with transaction volumes rising, but average rents softened amid sustained inventory pressure. However, there is the potential for this dynamic to change.
According to the Toronto Regional Real Estate Board (TRREB) Q1 2025 Rental Report, there were 14,797 condo apartment rental transactions across the Greater Toronto Area, showing an increase of 16.7% over the same period in 2024. However, this acceleration in leasing activity was matched by a continued rise in rental listings, which climbed 11% year-over-year to 22,652 units. Despite healthy absorption, inventory levels remain historically elevated, exerting downward pressure on rents.
One-bedroom units averaged $2,343 per month in Q1, down 4% from the previous year. Two-bedroom units averaged $3,036, a 3.3% annual decline. Smaller and larger units followed a similar pattern: bachelor apartments averaged $1,864, and three-bedroom units hit $3,863.
While the gap between rental demand and supply narrowed slightly this quarter, TRREB noted that if the pace of leasing continues to outstrip new listings, vacancy rates could tighten by late 2025, however.
An Edge Realty July 2025 market deep dive further notes the current soft rental conditions. Total active listings in the Toronto market, including both resale and rental units, reached a record 31,600 in June, with the condo segment carrying nearly seven months of inventory. Although this number relates to MLS resale supply numbers, and does not include rental-specific listings, it has been noted that many of Toronto’s condos, especially ones under 600 ft., are investor-owned and likely for rent. This oversupply has led to further declines in resale prices, which are now 22% off peak levels.
Declining property values and falling mortgage rates have improved the condo cash flow index to its best point since rate hikes began in 2022, but the prospect of more rental inventory hitting the market, particularly as record completions are still scheduled for this year, raises concerns about further weakening in rents before the market rebalances.
New construction data adds more complexities. Overall housing starts across the GTA have fallen 7.4% from last year, with condo starts down 11.5%. However, rental-purpose construction is bucking the trend: up 14.5% year-over-year, indicating a continued shift among developers away from ownership models toward long-term rental stock. This could sustain elevated rental supply into 2026, further delaying rent recovery.
Investor sentiment remains cautious, creating further impacts. While falling prices and improved cash flow fundamentals might draw some back into the market, many are waiting to see how much more rental softness lies ahead. New condo sales, often purchased by investors for rentals, have fallen, with fewer than 3,000 units sold over the past year, compared to a peak of 36,000 in previous years. This is leading to a sharp decline in new construction, with condo starts down 11.5% year-over-year, which could result in undersupply in the longer term.
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