Q2 2026 Residential Land Report

Market Overview

Residential land sales improved in Q2 2026. GTA sales reached approximately $810 million, more than double Q1 and up about 15% year over year, but activity stayed concentrated in roughly 40 transactions. The ten largest deals represented approximately 79% of GTA volume.

Distress Shaped the Quarter

Three of the ten largest transactions were distressed sales, representing 41% of the quarter's dollar volume. In these cases lenders acquired the sites to preserve value, protect stakeholders and carry the projects through to completion. Distressed and non-arm's-length transactions accounted for more than half of activity, as institutional buyers acquired land at reset pricing.

Buyers focused on ready-to-go land with a known timeline and a defined exit strategy. Townhouse land led demand, followed by single-family sites in established markets.

Notable Transactions

The largest GTA transaction was 1345 Lakeshore Road East in Mississauga (3.1 acres, $155.0 million), followed by 10302 Heart Lake Road in Brampton (6.8 acres, $118.3 million) and 186 Old Kennedy Road in Markham (9.6 acres, $77.8 million).

Low-Rise and Ground-Oriented

Single-family new home sales reached 902 units in June, approximately 36% above the ten-year average. Softer pricing and the enhanced HST rebate supported demand for serviced detached and townhouse sites. As of Q2 2026, total new low-rise sales in the GTA had already surpassed the full 2025 total.

Urban and High-Density

New condominium sales rose approximately 52% year over year to 700 units but remained below historical levels. Pre-construction and under-construction inventory declined about 37%, with no new project launches for a second consecutive quarter. Purpose-built rental remained the strongest segment, with more than 38,000 units under construction across the GTHA, while record completed condo inventory continues to pressure near-term absorption.

Policy Context

Several housing measures took effect in the quarter. Federal and provincial HST relief on eligible new homes valued up to $1 million, with partial relief up to $1.85 million, applies to purchase agreements signed from April 1, 2026 to March 31, 2027, with combined savings of up to $130,000 for eligible buyers, not only first-time buyers. Bill C-26 received Royal Assent on June 18, 2026, and Bill C-20, the Build Canada Homes Act, on June 19, 2026. On June 1, 2026, Canada and Ontario opened applications to the $8.8 billion, ten-year Development Charge Reduction Program, which prioritizes municipalities that cut residential development charges by 30% to 50% or more for at least three years.

Looking Ahead

The market will continue to favour well-capitalized buyers targeting distressed, serviced and strategically located land, with a defined exit supported by resale pricing. Low-rise land appears to be turning a corner as prices stabilize. With condo launches limited through 2026, the GTA and GGH may face a thinner completion pipeline by 2028 and, if trends continue, a significant supply shortage by 2030.

For further reading: Download the Q2 2026 Residential Land Report (PDF)

This report reflects information available at its release on August 5, 2026.

Thinking about buying or selling development land? Speak with our team.