Builder quietly cancels condo complex
Kingsclub becomes second condo project in last few weeks to suddenly convert to rental apartments, leaving more than 100 preconstruction buyers out in the cold.

But it’s also a sign that developers are starting to see the longer-term gains and profits to be made from rental, said la Fleur, who specializes in selling pre-construction condos to investors who rent them out.

“While this is a matter of buyer beware, it’s also a good sign for the market. It means that big money (deep-pocketed developers and institutional lenders) have confidence in the Toronto condo market and are seeing what pre-construction buyers have been seeing for years, that this (owning and renting condos) is a good way to make a return.”

Both projects are still expected to be registered as condominiums. That provides tax benefits and the long-term ability for the owners to still sell the units off as condos if the market changes, says Shaun Hildebrand, vice president of condo research firm Urbanation.