Canada Housing Market

As Toronto’s condo market continues to struggle with weak sales, project cancellations, and growing inventory, one developer has managed to do what many others currently can’t: secure enough buyers to start construction.

Developer Canderel officially broke ground this week on Forêt Forest Hill, a three-tower condominium development at the corner of Bathurst Street and St. Clair Avenue West in midtown Toronto.

The project will deliver 1,310 new homes and has already pre-sold more than 75% of units in its first phase, allowing the developer to secure construction financing despite one of the toughest condo markets in years.

A Rare Success Story In Toronto’s Condo Market

Toronto’s new condo market has faced significant challenges over the past two years.

Higher interest rates, affordability concerns, slowing population growth, and weakening investor demand have resulted in record-low new condo sales and thousands of cancelled or delayed projects.

According to Urbanation, more than 11,400 condo units have been cancelled in the Greater Toronto Area since the beginning of 2024, while thousands more have been converted into purpose-built rental projects.

Against that backdrop, Forêt Forest Hill stands out.

The development will feature three towers ranging from 35 to 41 storeys and include residential units, retail space, a public park, community amenities, and a childcare centre.

Prices range from the $500,000s to approximately $5 million.

Location Continues To Matter

Industry experts say the project’s success highlights the importance of location in today’s market.

The development sits steps from the St. Clair subway station and major transit routes, while also offering easy access to restaurants, shopping, parks, and established neighbourhood amenities.

Unlike some projects located in emerging areas that rely heavily on investors, Forêt Forest Hill appears to have attracted a broader mix of buyers looking for a long-term place to live.

According to the project’s sales team, the development was designed to appeal to multiple buyer groups, including first-time buyers, move-up purchasers, downsizers, and investors.

Bigger Units Instead Of Micro Condos

Another factor that may have contributed to the project’s success is its focus on livability.

While many projects launched during the condo boom emphasized smaller investor-focused units, Forêt Forest Hill offers a wider variety of layouts.

The development includes:

• Studio units
• One-bedroom units
• One-bedroom plus den units
• Two-bedroom units
• Three-bedroom units

The average suite size is approximately 630 square feet, with some homes reaching 2,000 square feet.

Sales representatives also created full-sized model suites that allowed buyers to walk through finished spaces before purchasing, something that became less common during the investor-driven condo boom.

Ontario’s HST Rebate May Be Helping

The project also appears to have benefited from Ontario’s expanded HST rebate program.

The province announced earlier this year that buyers of qualifying new homes could receive rebates worth up to $130,000 depending on the purchase price.

According to the project’s sales team, activity increased substantially following the announcement, with sales rising approximately 50% during the spring months compared to the winter period.

The rebate is currently scheduled to remain available until March 2027.

What It Means For Toronto’s Condo Market

While Forêt Forest Hill’s success doesn’t necessarily signal a broader recovery for Toronto’s condo sector, it does provide insight into what buyers appear willing to support in the current market.

Projects offering strong locations, larger and more functional layouts, transit access, and pricing incentives may continue to find buyers even as many competing developments struggle to secure financing.

For developers across the GTA, the project could serve as an example of what it takes to move forward during one of the most challenging periods the condo market has faced in years.

References

Feinstein, C. (2026, June 19). This Toronto developer has pre-sold 75% of units during a condo crash. Here’s how. Toronto Star. https://www.thestar.com/business/real-estate

Urbanation. (2026, April). GTA condominium market update. Urbanation. https://www.urbanation.ca

Ontario Ministry of Finance. (2026). Ontario new home HST rebate expansion. Government of Ontario. https://www.ontario.ca