04/25/2023
https://www.theglobeandmail.com/real-estate/article-torontos-soaring-new-condo-prices-may-hurt-renters-most/
"In 2016, the average preconstruction condo price in the GTA was about $657 per square foot (psf) according to Urbanation. If you didn’t want to wait several years for your condo to be built you could buy an existing condo that was trading in the resale market for a very comparable $638 psf, or a 3-per-cent discount.
By 2022 the average price of a new condo had shot up to $1,427 psf (and much more expensive in some core Toronto locations), which was 40-per-cent more than it cost for a resale condos that were trading for about $1,020 psf.
The bottom line is if new condos for sale now are too expensive to pay off for investors looking to flip or rent apartments, buyers won’t put down their deposits, the projects may take longer or simply will not get built and in a few years more renters will be competing for fewer apartments."
Costs of acquiring and holding onto unbuilt condos may have reached a point where investors are holding off if it seems likely future rents will not generate enough revenue
