Bulk Buyers Are Snapping Up 45% of New Toronto Condo Sales at 40% Discounts: What It Means for GTA Buyers, Investors and Mortgages (2026)

By Mudit Chhura  |  Co-Founder, IndiBrick  |  Read Time: 9 Mins

Investment groups are buying new Toronto condos in bulk, and at steep discounts. According to Urbanation's third quarter 2026 report, bulk buyers accounted for 45 percent of all new condo sales in the Greater Toronto and Hamilton Area (GTHA), paying roughly 40 percent below the original selling prices in the same buildings.

If you are a first-time buyer, a newcomer, an investor, or someone who bought a pre-construction condo and is facing closing, this matters. This guide explains what bulk condo sales are, why discounts are so large, what it means for Toronto condo prices and the GTA rental market, and what you can do now.

Want your own numbers while you read? Use our free affordability calculator or see today's lowest mortgage rates.

GTHA New Condo Sales Q3 2026: The Numbers

Indicator	Q3 2026 Reading
New condo sales (GTHA)	760 units, about double a year earlier
Compared with the 10-year Q3 average	Still about 78% below
Bulk sales	339 units, or 45% of all new condo sales
Sales in completed buildings	Record 648 units, an 85% share
Pre-construction sales	60 units, down about 61% year over year
Average bulk price	About $763 per square foot, roughly 40% below original selling prices
Standing inventory	5,127 units, down 7% from Q2 but about 40% higher than a year ago
Construction starts	381 units in Q3, with year-to-date starts about 82% below the 10-year average
Units under construction	About 35,920, the lowest since early 2012

Source: Urbanation Q3 2026 Condominium Market Survey, as reported by the Financial Post, CP24 and MPA.

What Is a Bulk Condo Sale?

A bulk condo sale happens when a single buyer, usually an investment fund or private real estate firm, purchases many units in a building at once, instead of one at a time. Because the buyer commits to a large number of units, the developer often accepts a lower price per unit in exchange for certainty and speed.

The Financial Post reports that the buyers are private real estate investment firms and funds acquiring completed condos to operate as long-term rentals. Two publicly announced examples are High Art Capital's provincially backed program targeting about 2,200 rental homes and Jesta Group's program targeting more than 1,000 units.

Why Are Developers Selling Condos at Such Deep Discounts?

The simple answer is that completed, unsold units are expensive to hold. As Toronto real estate analyst John Pasalis put it, "The developers are between a rock and a hard place."

• Carrying costs: developers must keep paying condo fees and financing costs on completed units that stay unsold
• Falling resale prices: resale condo prices have fallen nearly 30 percent, which pulls down what buyers will pay for new units
• Buyers who cannot close: some pre-construction buyers have been unable to close, adding to the stock of completed unsold units
• Tax relief: Urbanation credits Ontario's HST relief, along with bulk sales, for the pickup in activity

Interestingly, bulk buyers paid about 12 percent less than the roughly $866 per square foot averaged by resale units in recently registered buildings. That helps explain why the discounts to original prices are so large.

What Bulk Buying Means for Toronto Condo Prices

Bulk sales at big discounts can reset price expectations. They also show where investors think the market is, which some analysts see as an early sign of a bottom. But analysts are divided on what comes next.

• Weak demand from regular buyers: overall new condo sales are still far below normal, and pre-construction sales are at a very low 60 units
• High supply for now: standing inventory is still about 40 percent higher than a year ago, though it fell from the previous quarter for the first time in four years
• Shrinking pipeline: with starts at historic lows, Urbanation warns of a possible "significant shortage by the end of the decade"
• No rapid rebound expected: some analysts say builders' costs are still higher than what buyers will pay, so they do not expect new condo sales to bounce back soon

In short, condo buyers may have negotiating room today, but the longer-term supply picture is very different from the present glut.

What It Means for Different Buyers and Owners

First-time homebuyers and newcomers to Canada

Completed condos and builder inventory offer more choice and more negotiating room than in recent years. Bulk sales are for investors, not individual buyers, but the same market weakness can show up in builder incentives and resale pricing. Get pre-approved, know your full costs including condo fees and closing costs, and check which first-time buyer programs you qualify for.

Investors and rental property buyers

Bulk buyers are targeting rental supply, which tells you where institutional money sees value. Smaller investors should compare cash flow carefully, since condo fees, financing costs and rental rates decide whether a unit works. Brokers can structure financing for rental and investment properties through lenders with different rules than a single bank.

Pre-construction buyers facing closing

If you bought a presale condo years ago and values have fallen, you may be worried about closing. Start the conversation early. Lenders appraise based on current value, which can leave a gap if the appraisal comes in below your purchase price. A broker can review your options before your closing date, and a lawyer can advise on your agreement.

Current condo owners

Falling resale prices and heavy discounting affect your equity. If your mortgage is up for renewal, compare lenders and stress test your budget instead of accepting your bank's first offer.

The Supply Shortage Ahead: Why Fewer New Condos Matters

New construction has collapsed. Only 381 units started in Q3, units under construction are the lowest since 2012, and scheduled completions fall to about 4,213 units in 2029. Urbanation warns the supply pipeline is drying up, setting up a significant shortage by the end of the decade.

That does not mean prices will rise soon, because today's inventory still has to be absorbed first. It does mean the window for condo buyers who benefit from a soft market may not last forever, and that timing is worth discussing with an advisor and a realtor.

Six Practical Steps for Buying a Condo in the GTA Right Now

1. Know your real budget. Use the affordability calculator and include condo fees, property tax, insurance and closing costs.
2. Check today's rates. Start with our mortgage rates page so you know where the market is.
3. Get pre-approved and hold your rate. A rate hold protects you while you shop.
4. Research the building. Review the status certificate, reserve fund, condo fees and the unit mix before you offer.
5. Plan for the appraisal. Lenders appraise on current value, so understand how it affects your down payment.
6. Work with one coordinated team. Speak with an IndiBrick advisor. Your mortgage advisor, realtor and lawyer should be on the same plan.

Frequently Asked Questions About Bulk Condo Sales in Toronto

What are bulk condo sales?

A bulk condo sale is when one buyer, usually an investment fund or private real estate firm, purchases many units in a building at once, typically at a discount to the original selling prices.

How much of new condo sales in the GTA are bulk deals?

According to Urbanation's Q3 2026 report, bulk deals made up 339 units, or about 45 percent of new condo sales in the GTHA.

How big are the discounts on bulk condo purchases?

Bulk sales closed at an average of about $763 per square foot, roughly 40 percent below original selling prices in the same buildings and about 12 percent below recent resale prices in registered buildings.

Why are developers selling unsold condos in bulk?

Developers must keep paying condo fees and financing costs on completed unsold units while prices have fallen. Bulk sales let them clear many units at once and improve cash flow.

Are Toronto condo prices going to keep falling?

No one can say for certain. Resale condo prices have fallen nearly 30 percent, and inventory is still high. But new construction is at historic lows, which some analysts expect to tighten supply later in the decade.

Can an individual buyer get a bulk discount on a condo?

Bulk pricing generally applies to investors buying many units. Individual buyers may still find negotiating room, builder incentives or lower resale prices, so it is worth comparing options with a realtor and a mortgage advisor.

Is now a good time to buy a condo in Toronto?

It depends on your finances, plans and risk tolerance. Weaker prices and more choice help buyers, while the shrinking pipeline could reduce supply later. An advisor can show you where you stand.

What happens if my condo appraisal is lower than my purchase price?

Lenders lend based on the lower of the purchase price and the appraised value, so a shortfall may require a larger down payment or another solution. Speak with a mortgage advisor and your lawyer early, before your closing date.

Where can I find the lowest mortgage rates for a condo?

Rates differ by lender, term, down payment and property. A broker can compare multiple lenders for you, and you can start with the current rates on our mortgage rates page.

The Bottom Line

Bulk buyers are clearing out Toronto's unsold new condos at deep discounts, which tells us two things: the market is still adjusting to a large supply of completed units, and institutional money sees long-term rental value. At the same time, new construction has slowed sharply, so the picture may look very different by the end of the decade.

The most useful move is to replace guesses with numbers: check today's lowest rates, find out what you can afford, and talk to an advisor before you decide.

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Sources: Financial Post (Shantae Campbell, Oct 20, 2026); Urbanation Q3 2026 Condominium Market Survey as reported by CP24 and MPA. Figures change quarterly. Rates and program details are subject to change and qualification. This article is general information and not financial, tax, legal or investment advice.