Toronto, ON - Investors who bought pre-construction condos during the 2017–2018 boom were often told they could “assign before occupancy and never need to close.” As those projects finally complete in 2025 and 2026, many buyers across the Greater Toronto Area (GTA) are discovering a very different reality: lower resale prices, tougher lending standards, lower rents and an overall slower market that is punishing speculators.
Buttonwood Property Management, a Toronto-based property management firm focused on the GTA, is working with investors who are now transitioning from presale contracts to actual ownership. For many, the question has shifted from “Should I buy?” to “How do I close, hold, and stay solvent in this new environment?”
A New Reality for Pre-Construction Closings in the GTA
Average condo prices in the GTA have eased from previous highs, even as a large pipeline of new units is being delivered. Fewer new projects are launching, yet completions remain elevated, creating a period where more investors are taking possession just as valuations and expectations reset.
At the same time, yields on prime properties have settled in the 2–3 percent range. That is still viable for long-term investors, but it leaves less room for error. The emphasis now is on disciplined budgeting, realistic rent assumptions, and professional management throughout the hold phase.
Financing Gaps, Appraisal Shortfalls, and Higher Carrying Costs
One of the biggest stress points for 2025–2026 closings is the gap between contract prices signed years ago and current appraised values. In many cases, lenders are coming in below the original purchase price, forcing buyers to inject additional equity at the last minute to satisfy loan-to-value requirements.
Layered onto that are higher interest rates, insurance premiums, condo fees, utilities, and property taxes. Deals that once looked comfortably positive on paper now require detailed cash-flow planning. For some purchasers, the choice is stark: find extra capital or risk losing the deposit and have a lawsuit with the builder.
Rental Demand as a Safety Valve – With Conditions
Despite these pressures, Toronto’s rental market remains resilient. Vacancy rates are still low by historic standards, but tenants have become more discerning. Units that are priced realistically and professionally managed tend to lease quickly; those priced around an owner’s carrying costs instead of true market value often sit empty.
Buttonwood’s experience across a broad GTA portfolio has shown that consistent occupancy depends more on correct pricing and careful tenant selection than on chasing the highest possible rent numbers. Stable tenancy and low arrears are what keep cash flow intact in a slower market.
How Buttonwood Property Management Supports Condo Investors in 2025–2026 Closings
Drawing on more than a decade of operational experience in the GTA, Buttonwood Property Management helps investors turn difficult closings into durable, income-producing assets by:
- Guiding investors from PDI to key handover, including defect reporting, deficiency follow-up, and move-in coordination.
- Designing leasing strategies that reflect real absorption levels, with professional marketing, tenant screening, and proprietary policies and procedures that have helped keep evictions for non-payment extremely low across thousands of leases.
- Managing day-to-day operations, including rent collection, maintenance/repairs and 24/7 emergency coordination, bookkeeping, rent increases and much more.
- Pivoting when resale stalls, quickly shifting from a “for sale” mindset to a “hold and lease” strategy so units are not left idle while carrying costs mount. When the time is right we help investors with the sale of their investment property and excel at selling tenanted properties.
- Non-resident tax withholding on rental income, we manage the NR4/NR6 process on behalf of owners that have rental properties in Toronto and live abroad to meet the CRA requirements.
Prime Properties Still Stand Out and Perform Better Over Time
Not all new condos perform equally. Buttonwood encourages investors to focus on fundamentals that continue to drive outcomes in the GTA: city centres, proximity to public transportation, functional layouts, great ranking school districts, well-run buildings with sensible fees, building amenities, owner occupied condo units versus majority investor owned, building bylaws around AirBNB, and developers with a track record of delivering quality projects. These are just a few of the inputs we consider when advising on investment grade condo units that are best positioned to earn steady returns and appreciate over time.
Long-Term Perspective for GTA Pre-Construction Investors
With fewer new projects breaking ground and a finite pipeline of units under construction, the current period of elevated completions is unlikely to last forever. Investors who can close, rent intelligently, and hold through the adjustment are positioned to benefit when supply tightens again.
From pre-delivery inspection to leasing and long-term management, Buttonwood Property Management provides GTA investors with hands-on support and disciplined stewardship tailored to today’s market realities.
About Buttonwood Property Management
Buttonwood Property Management is a Toronto-based firm specializing in residential property management across the Greater Toronto Area, including condos, townhomes, and single-family properties. With a focus on transparency, careful cost control, and stable tenancy, Buttonwood helps investors navigate complex market cycles while protecting cash flow and long-term asset value.
Media Contact
Company Name: Buttonwood Property Management Inc.
Contact Person: Sabine Ghali
Email: Send Email
Phone: (416) 835-7191
Address:2 St Claire Street West M4V 1L5 Suite 1800
City: Toronto
State: Ontario
Country: Canada
Website: www.buttonwood.ca