Canada Housing Agency Doesn’t See Bubble in Toronto Condo Market

Developers now are making sure 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. said.

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