The Globe and Mail reports in its Friday edition that a recent industry report estimates that preconstruction condo prices in the Toronto region need to drop by 5 to 7 per cent to attract retail investors again. The Globe's Rachelle Younglai writes that individual investors, who previously made up over 70 per cent of sales, have left the market as condo investments are no longer profitable, finding better value in the resale market instead. New condos on the resale market are averaging 18 per cent cheaper than unbuilt preconstruction condos as of this year's second quarter, says a report by Urbanation and CIBC. The gap between newly built condos and preconstruction units has decreased from 40 per cent in early 2023. However, preconstruction prices still need to drop by 5 per cent to 7 per cent to "restart the condo engine," bringing the average price per square foot closer to $1,000. As of the second quarter of 2023, the average price for preconstruction condos in the Toronto region was $1,148 per square foot, while recently completed condos on the resale market averaged $974 per square foot, according to Urbanation data. This year, preconstruction condo sales in Toronto are at their lowest level since the 1990s.