Article content

The smallest units in the Greater Toronto Area (GTA) condo market are experiencing the largest price drops, with micro condos losing value at roughly twice the rate of larger ones, according to a report by real estate platform Wahi Realty Inc. Brokerage.

Sign In or Create an Account

or View more offersArticle content

The report said Toronto’s smallest condos are taking the biggest hit in the market downturn, as those under 500 square feet declined 12.2 per cent in value between 2020 and 2025.

Article contentWe apologize, but this video has failed to load.Try refreshing your browser, or
tap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, or
tap here to see other videos from our team.Article content

Story continues below

This advertisement has not loaded yet, but your article continues below.

Article content

By a large margin, Toronto’s micro condos have consistently seen the strongest depreciation in recent years. To compare, micro condos in Vancouver gained 4.9 per cent in value.

Article contentArticle content

“We know from our own research that most Canadians ideally want at least three bedrooms in a home, so micro units with one — or in many cases, zero — bedrooms have much more limited appeal for end users,” said Real Property Solutions and Wahi economist Ryan Mclaughlin.

Article content

Mclaughlin said another factor is there being so many deals on the condo market right now, and active buyers having the opportunity to purchase larger units than they may have been able to afford previously.

Article content

In 2025 alone, GTA micro condos lost an average of $152 per square foot in value year-on-year — the steepest decline of the five-year period, Wahi said in its report, which looked into the per-square-foot appraised values of GTA and Greater Vancouver condos.

Article content

It said that condo prices in July were bid down in 98 per cent of neighbourhoods in the GTA where at least five units changed hands.

Article content

Despite recent annual depreciation across all asset types in both cities, with the exception of all but the smallest condos in Toronto, appraised values stand higher than five years ago.

Article content

Story continues below

This advertisement has not loaded yet, but your article continues below.

Article content

Meanwhile, GTA units between 500 and 700 square feet fell 6.2 per cent, compared with a 19.4 per cent increase in Vancouver.

Article contentRead More

  1. New condos drive Toronto’s first sales increase in nearly three years. But it’s not all good news
  2. Are Ontario’s homebuyer rebates reviving demand? Yes, but not where you’d expect
  3. Story continues belowThis advertisement has not loaded yet, but your article continues below.

Article content

While both the single-family home and condo segments, respectively, have experienced reduced demand, 92 per cent of neighbourhoods were in underbidding territory for single-family homes and the latter has been especially sensitive to the exodus of investors.

Article content

“Without investor demand to support the market, condos have become a tougher sell across the GTA, particularly for the smallest units,” said Mclaughlin.

Article content

The report said that prior to the pandemic pricing peak when a surge of new condos launched, purpose-built rental construction had been lagging for decades. The condo market had effectively become a secondary rental market, with investors purchasing smaller high-rise units to lease out, it said.

Article content

• Email: [email protected]

Article contentWe apologize, but this video has failed to load.Try refreshing your browser, or
tap here to see other videos from our team.Article content