Canadian developers start building only after getting high sales

Toronto

DEVELOPERS now are making sure that they reach a higher level of sales before they begin construction on Toronto condominium projects, contrary to the housing bubble that unfolded in the city in the 1980s, Canada Mortgage & Housing Corp (CMHC) said.

Work began on 79 per cent of condo buildings only after developers pre-sold at least 70 per cent of the units, the Ottawa-based agency said in a report on Tuesday. The 21 per cent of towers that commenced construction before reaching the 70 per cent threshold were usually smaller projects or built by well-known developers.