Condo crash stalls Golden Mile towers

Source: thestar.com

TL;DR

The story at a glance

Toronto's condo market downturn has stalled major redevelopment plans for the Golden Mile in Scarborough, including Dream's proposed towers at 2200 Eglinton Avenue East. Developers like Dream and Starlight, along with city planners, face weak preconstruction sales despite the recent Eglinton LRT opening after 15 years of delays. The article reports this now amid recent government incentives like HST waivers, as no projects have broken ground yet.[[1]](https://www.thestar.com/real-estate/how-torontos-condo-crash-upended-a-75-tower-plan-for-golden-mile/article_eed67f96-98e7-4f73-bcb7-b02cb6ee762c.html)

Key points

Details and context

The Golden Mile redevelopment ties to the Eglinton Crosstown LRT, now operational, which promised higher density along its route. University of Toronto planning expert Matti Siemiatycki notes the area's improved location but terrible timing from the market crash, predicting a "domino effect" of pauses.[[1]](https://www.thestar.com/real-estate/how-torontos-condo-crash-upended-a-75-tower-plan-for-golden-mile/article_eed67f96-98e7-4f73-bcb7-b02cb6ee762c.html)

Developers face land loans and financing costs while current sites provide some income from stores or offices. City plans include new roads, nine parks, and community spaces, with a "social mandate" to benefit existing residents. Recent policy changes, like reduced development charges and a one-year HST waiver on new homes worth $2.2 billion federally and provincially, may help but details are pending.[[1]](https://www.thestar.com/real-estate/how-torontos-condo-crash-upended-a-75-tower-plan-for-golden-mile/article_eed67f96-98e7-4f73-bcb7-b02cb6ee762c.html)

Smaller phases could defer infrastructure upgrades and build momentum, while expiring leases free land. Existing renters like Lorraine Hogan, paying $1,000 monthly for a two-bedroom, face uncertainty from proposals like Starlight's.[[1]](https://www.thestar.com/real-estate/how-torontos-condo-crash-upended-a-75-tower-plan-for-golden-mile/article_eed67f96-98e7-4f73-bcb7-b02cb6ee762c.html)

Key quotes

“We were really hopeful we’d be able to go... the market just isn’t there.” — Jamie Cooper, Dream executive.[[1]](https://www.thestar.com/real-estate/how-torontos-condo-crash-upended-a-75-tower-plan-for-golden-mile/article_eed67f96-98e7-4f73-bcb7-b02cb6ee762c.html)

“Real estate is about location and timing... the timing has gotten infinitely worse because the market has tanked.” — Matti Siemiatycki, University of Toronto planning expert.[[1]](https://www.thestar.com/real-estate/how-torontos-condo-crash-upended-a-75-tower-plan-for-golden-mile/article_eed67f96-98e7-4f73-bcb7-b02cb6ee762c.html)

Why it matters

The stall delays a key housing boost in Scarborough amid Toronto's ongoing shortage, complicating plans for transit-oriented density. Developers, residents, and city planners must adapt with smaller projects or rentals, while buyers face fewer new options and experts highlight unaffordable pricing. Watch government incentives' impact and any resubmissions, though market recovery remains uncertain.[[1]](https://www.thestar.com/real-estate/how-torontos-condo-crash-upended-a-75-tower-plan-for-golden-mile/article_eed67f96-98e7-4f73-bcb7-b02cb6ee762c.html)

What changed

Before the condo market crash, city planners in 2024 expected Golden Mile projects like Dream's towers to break ground as early as 2025, spurred by LRT anticipation. Now, no projects have started, with developers pausing amid dismal sales and revising to smaller scales or rentals. This shift followed the LRT opening and market downturn in recent months.[[1]](https://www.thestar.com/real-estate/how-torontos-condo-crash-upended-a-75-tower-plan-for-golden-mile/article_eed67f96-98e7-4f73-bcb7-b02cb6ee762c.html)

FAQ

Q: Why can't Dream advance its Golden Mile towers?

A: Dream made progress on a site plan for two towers with 1,000 units but stopped because preconstruction sales are too weak to make the finances work, even after considering rentals. Executive Jamie Cooper said they were hopeful but the market isn't there. The company awaits better conditions.[[1]](https://www.thestar.com/real-estate/how-torontos-condo-crash-upended-a-75-tower-plan-for-golden-mile/article_eed67f96-98e7-4f73-bcb7-b02cb6ee762c.html)

Q: What is the scale of the Golden Mile redevelopment plan?

A: The plan covers 113 hectares and envisions 75 towers up to 48 storeys, over 100 buildings total, adding 56,000 residents over 30 years. It includes new roads, community spaces, and nine parks tied to the Eglinton LRT. The density aims to transform strip malls into a community.[[1]](https://www.thestar.com/real-estate/how-torontos-condo-crash-upended-a-75-tower-plan-for-golden-mile/article_eed67f96-98e7-4f73-bcb7-b02cb6ee762c.html)

Q: How has the condo crash affected sales in the GTA?

A: February 2026 saw 531 new home sales, up 16 per cent from last year but well below the 10-year average of 2,220. Citywide, developers pause or cancel due to poor prospects and eroded profits. This hits Golden Mile hard despite no withdrawn applications.[[1]](https://www.thestar.com/real-estate/how-torontos-condo-crash-upended-a-75-tower-plan-for-golden-mile/article_eed67f96-98e7-4f73-bcb7-b02cb6ee762c.html)

Q: What adjustments are developers making in Golden Mile?

A: Some propose smaller initial phases of 350 units for easier pre-selling and financing versus 800-1,000. City staff await resubmissions like Starlight's for 1,500 units replacing rentals. Expired leases open land, allowing deferred infrastructure costs.[[1]](https://www.thestar.com/real-estate/how-torontos-condo-crash-upended-a-75-tower-plan-for-golden-mile/article_eed67f96-98e7-4f73-bcb7-b02cb6ee762c.html)