Condo market across the GTA suffers
As the GTA condo market faces significant challenges, two high profile Scarborough developments have been put on hold.
In May, local developer Republic Developments announced they were selling Scarborough Junction, a large master-planned community at Kennedy Rd and St. Clair Ave E.
Also, Toronto based developer Diamond Kilmer announced their plans to “reassess future plans for the site” of their proposed condo and townhome development on the former quarry lands at Victoria Park Ave and Gerrard St E.
Scarborough Junction is a master-planned 26 acre community consisting of 12 towers of 19 to 58 storeys with residential and commercial space. The community would also include 3478 above grade parking spaces and 15% of the land would be put aside for parkland including 425 new trees. The site is located next to the Scarborough Junction GO station.
The developers launched the project in August 2020, promising “a highly walkable, pedestrian-first mixed-use development that enjoys a wide variety of accessible housing types, an abundance of convenient retail and a spoil of stress-free transit connections.”
In Scarborough-Southwest, BIrchley Park purchasers have had their deposits returned to them as the developer has paused the project. The 19 acre site was to feature 2 mid-rise buildings and 22 adjoining townhomes, with all units ranging from 374 to 951 square feet.
Amenities were to include a sauna, zen garden, indoor basketball half-court, all season spa and swimming pool. There was also 5000 square feet of commercial retail space planned.
The development proposal was approved by Toronto city council in 2021, with sales beginning in 2023. Work on the site also began a few years ago with trees and vegetation cleared, sewers installed and an access road built.
The stalling of these developments comes amid turmoil in the GTA condo market. According to the Toronto Regional Real Estate Board, first quarter 2025 condominium sales are down 21.7 percent compared to this time last year. The average selling price is also down 2.2 percent this year compared to last year.
TD Bank economists are predicting that by the end of 2025 condo prices will likely have dropped by 15-20% from their peak in the fall of 2023. The realtor.ca website currently lists more than 13,000 condos for sale in the GTA.
With softening demand due to falling population growth, the instability brought by tariffs, and rising unemployment, there is great uncertainty about what the future will hold for these and other large master-planned communities in Scarborough.
