Real Estate Dumpster Fires In the Toronto Market

Open your inbox or Google News feed and there’s plenty of articles showcasing the ‘best condos in Toronto,’ and more on local hotspots, new projects, and so on . At the risk of coming off as negative, we ask, ‘why only focus on positives?’ Toronto’s always got new condo projects to get excited about. What isn’t talked about nearly enough is its lackluster offerings – i.e. properties you’d be better off avoiding. This article will fix that with an in-depth review of both notorious and little known neighborhoods that aren’t worth the investment. 

ICE Condos 

We can’t start this list off with any other name than ICE Condos. Completed in 2015, this building is famous for chaos. Social media videos show an array of crises, inconveniences and even crimes, ranging from non-stop fire alarms to full on SWAT raids and puddles of blood in elevators. That somehow doesn’t stop inadequately informed investors from taking interest in the 1,167 units inside. Some are even aware of the caveats and move forward anyway, hoping usually-below-market prices will offset any losses that come with having to deal with such an unpredictable Toronto condos.

The One

Marketed as Canada’s tallest residential tower, The One at Yonge and Bloor has instead become one of the city’s clearest cautionary tales. Developer insolvency forced the project into receivership in 2024 after Mizrahi Developments defaulted on a $1.23 billion loan – the final project debt ballooning to $1.6 to 1.7 billion. 

Construction temporarily froze at just 40 storeys, far below its planned 85-storey height, leaving early buyers and investors exposed to completion delays, financing headaches, and possible unrecoverable deposits. Construction has since resumed with a new developer, Tridel, which promises substantial completion by 2026 and full completion in Q1 2028.

The scale of The One’s failure reflects the risks of buying in pre-construction “super towers” – especially those with thin capital reserves, ambitious timelines, and little margin for error. Much like some of the city’s worst rental investments, The One teaches a lesson in hubris: even the highest-profile projects can come crashing down, leaving investors with little more than a hole in the skyline to show for their money.

Regent Park

While the area has seen drastic improvements in public amenities, safety, and urban design, investors have rarely been rewarded with rapid property appreciation in Regent Park. 2025 resale data points to minimal inflation-adjusted gains, or outright losses, even after major renovations. A unit at One Park Place, profiled in a real estate agency’s online blog, provides an entire case study.

Regent Park’s primary pitfalls for investors include persistently modest resale demand, slow price growth, and neighborhood stigma that lingers despite the revitalization. Rental yields stay stable thanks to public infrastructure investments, yet buyers drawn by the “next big thing” narrative have been disappointed by lackluster long-term appreciation. 

Neighbourhood: Jane-Finch

Jane-Finch is one of Toronto’s most stigmatized neighborhoods, albeit for good reason(s). Let’s talk about the most pertinent; known for high-density towers, ongoing poverty challenges, and a historic lack of public investment, this area remains a speculative, high-variance play that’s poorly suited for conservative or novice condo investors.

Investors face a dual-edged sword: some recent condo developments have posted above-average appreciation rates, outpacing core Toronto by nearly 20% in specific periods. But there are also growing pains. 

A major $2 billion redevelopment positioned as a community-first urban renewal for Jane Finch Mall and surrounding areas has already garnered concerns about gentrification attempts and public perception.

Socioeconomic factors such as low median incomes, ongoing safety concerns, and rapidly shifting development plans mean rental performance and resale depend heavily on city-led initiatives, transit projects, and the neighborhood’s broader reputation. In other words, not ideal unless you’re a highly risk-tolerant buyer who believes in the possibilities of long-term transformation.

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Toronto may be one of, if not the best cities in Canada when it comes to real estate investment opportunities. But with every great offering comes a few that aren't so good. No one is immune to buying in the wrong building or neighborhood. Hopefully this article will help you avoid major mistakes.