The pre-construction market has changed dramatically since 2021. Closing costs are higher, assignment markets are tighter, and some 2018-era projects have closed for less than their original purchase price.
But pre-con is not dead. Here's what still works in 2026.
What's broken
- Speculative downtown Toronto condos: oversupply, weak rents, brutal closing costs
- Assignment-only strategies: HST nuance and CRA scrutiny make this much harder
- Tiny investor units: 350 sqft micro-condos rarely cash flow once they close
What still works
- Ground-related pre-con (towns and detached) in growing GTHA suburbs
- Pre-con in secondary markets: Hamilton, Niagara Falls, St. Catharines, Kitchener
- Quality developers with extended deposit structures
- Buy-and-hold rather than assignment
The framework I use
For any pre-con project I recommend, it has to pass four tests:
- Developer track record: have they delivered on time and on spec before?
- Deposit structure: 5-10% on signing, balanced over 3-4 years
- Closing math: does the project work as a hold-and-rent if assignment fails?
- Submarket fundamentals: population growth, job creation, transit investment
If a project fails any of these, I pass - even if the platinum pricing looks attractive.
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I track active pre-construction projects across the GTA, Hamilton, and Niagara. Request platinum access →
This information is for educational purposes only and does not constitute financial or investment advice. Past performance does not guarantee future results.