What Happened

Canderel officially broke ground on the Forêt Forest Hill development at Bathurst and St. Clair in midtown Toronto on June 18, 2026. The project, which will deliver 1,310 suites across three residential towers ranging from 35 to 41 storeys, secured construction financing from a consortium of five major Canadian banks led by CIBC. This groundbreaking occurs at a critical juncture, as many planned condominium projects across the city are currently stalled or delayed. Despite broader market headwinds, Canderel has presold more than 75% of the initial 1,310 units, a performance that helped secure the necessary financial backing. The development will also feature significant community amenities, including a new public park, childcare centre, and approximately 50,000 square feet of indoor and outdoor space.

Why It Matters

The commencement of construction on Forêt Forest Hill is significant because it defies the current trend of project delays and cancellations in the Toronto condominium market. Securing financing from a consortium of five leading banks demonstrates that institutional confidence remains intact for well-executed projects in prime locations. The high presale rate of over 75% indicates that buyer demand is still present but highly selective, gravitating toward reputable developers and well-designed properties. This project serves as a benchmark for how developers can navigate a challenging environment by leveraging strong financial partnerships and delivering high-quality, amenity-rich communities. It also highlights the ongoing transformation of the St. Clair and Bathurst area into a dense, mixed-use neighbourhood with substantial public benefits.

Local Vancouver / Burnaby Context

While this development is located in Toronto, the broader Canadian real estate market shares similar dynamics regarding financing and buyer sentiment. In the Greater Vancouver and Burnaby areas, developers are also navigating a complex landscape where high construction costs and interest rate sensitivity impact feasibility. The emphasis on amenity-rich, well-located projects seen in Toronto mirrors trends in Burnaby’s Metrotown and Brentwood Town Centre, where buyers prioritize quality and developer reputation. Local context in Burnaby often highlights the importance of transit-oriented development near stations like St. Clair West Station in Toronto, which drives value in midtown locations. The success of Forêt Forest Hill underscores the national trend where only projects with strong presales and solid financing are moving forward, a reality also felt by Vancouver-area builders managing pre-sale requirements and construction timelines.

Market Impact

For the Toronto market, the progress of Forêt Forest Hill suggests that the condominium segment is not entirely frozen but is undergoing a significant correction where only the strongest projects survive. The high presale rate may put pressure on competing projects to lower prices or offer incentives to attract buyers. The inclusion of a new public park and community space adds value to the surrounding neighbourhood, potentially increasing property values for nearby residents. The development’s focus on boutique suites and high-end amenities caters to a specific segment of buyers seeking luxury and convenience, which may limit its direct impact on the broader affordable housing market. However, it provides a much-needed boost to construction activity and related industries in the midtown area.

Builder / Developer Perspective

For builders and developers, the Forêt Forest Hill project demonstrates the importance of securing financing early and maintaining strong presale momentum. The use of a consortium of five banks reduces risk and provides financial stability, which is crucial in a volatile market. Developers must focus on delivering high-quality, well-designed projects that appeal to discerning buyers, as generic developments are less likely to succeed. The integration of significant community amenities, such as a public park and childcare centre, can help justify higher prices and attract buyers looking for a complete living experience. Additionally, the project’s phased approach, with the eastern tower featuring boutique suites, allows for targeted marketing and risk management.

BurnabyHouse Insight

The groundbreaking of Forêt Forest Hill is a testament to Canderel’s ability to execute in a challenging market, but it also highlights the stark divide in the Toronto real estate landscape. While some projects stall, others like this one are moving forward with strong financial backing and high presale rates. This suggests that the market is not dead but is becoming increasingly selective. For local readers, the key takeaway is the importance of due diligence: look for projects with solid financing, reputable developers, and strong presale performance. The integration of community amenities like parks and childcare centres is also a growing trend that adds long-term value, making such projects more resilient to market fluctuations. In Burnaby and Vancouver, similar dynamics are at play, where quality and location are paramount for success.