Hold or Sell? Making the Right Call for Your Downtown Toronto Condo in 2025

Hold or Sell? Making the Right Call for Your Downtown Toronto Condo in 2025

Several of my clients have been asking me the same question lately: “Should I sell my downtown condo now, or rent it out and hold?” It’s a fair question—especially in 2025, when the headlines are grim and the numbers don’t offer much comfort.

There’s no denying we’re in a softer market. June’s TRREB report showed sales volume dropped 13.3% year-over-year. Listings have jumped past 30,000, and average home prices are down about 4% from last year. That’s enough to make anyone hesitate. But just because the market feels slow doesn’t mean it’s the wrong time to hold. In fact, not selling might actually be the smarter long-term move.

A lot of investors panic when prices dip, but when you zoom out and look at the fundamentals, the story shifts. For example, if you’re holding a newer condo—especially one built after 2018—it’s not subject to Ontario’s rent control rules. That gives you real flexibility. You can adjust rent to reflect current market conditions, and if the tenant isn’t a great fit, you’re not stuck. That’s a big contrast to older rent-controlled buildings, where rent increases are capped around 2.5% annually and problematic tenants can be difficult—and expensive—to remove.

I’ve had clients tell me they’re tempted to sell simply because they don’t want to deal with difficult tenants. And honestly, I get it. Being a landlord isn’t always easy. But I always say this: don’t sell just because it feels like a hassle. That’s exactly why it’s so important to place the right tenant from the start.

This is where I can really help. With over 10 years of real estate experience, I specialize in thorough tenant screening—and I don’t just look at income and credit scores. I dig into rental history, check references, and pay attention to subtle red flags that others might miss. A good tenant can make your investment feel like it runs on autopilot. A bad one can turn it into a full-time headache. Getting it right isn’t luck—it’s a system. And that’s where I come in, so you can keep your investment without the stress.

Now, to be fair, there are situations where selling absolutely makes sense—even in this kind of market. If the debt burden on your property is overwhelming and you’re constantly dipping into savings just to stay afloat, then selling might be the right call. I’ve seen cases where letting go of a property helped reset someone’s financial life and gave them breathing room.

Another valid reason to sell is if you’ve decided to permanently leave Toronto. If you’re relocating to the U.S. or heading back overseas with no plans to return, it probably doesn’t make sense to hold a property you’re not going to live in or actively manage. In that case, selling simplifies things and frees up capital.

I’ve also seen clients successfully sell a smaller home or condo in order to trade up to something bigger—especially now. Detached homes have fallen about 20% from their peak in early 2022, and condos dropped a similar percentage. That narrows the gap between the two. So if you’re selling a $600K condo that dropped 10%, you’re down $60K—but if you’re buying a $1.5M house that also dropped 10%, you’re saving $150K. It’s a smart move when the timing works in your favor.

But what if you’re not in financial trouble, not leaving the city, and not looking to upgrade? You’re simply staring at an empty condo—or one that will be vacant soon—and wondering what to do. Should you sell it now, while the market is still soft?

Not necessarily.

Let me share a real-life example. A client of mine owns a 600 sq ft condo with parking in downtown Toronto. It sat on the market for a while with no serious offers—even at a $550,000 list price. Buyers were hesitant, hoping it would fall even more. Instead of chasing the market down, the owner rented it out for $2,800 a month.

With a 20% down payment and a mortgage rate of about 4.5%, the numbers worked out better than expected. After covering mortgage interest, property tax, condo fees, and maintenance, the annual ROI still came in over 3%. That’s purely from rental income—not even considering appreciation.

Now here’s where it gets interesting: if interest rates drop by even 1%, which many expect in the coming year, that ROI could jump to 7% or more. That’s a solid return for a passive investment in one of the city’s best locations.

Even if condo prices stay flat for the next year or two, that kind of yield makes it worth holding. You’re literally getting paid to wait—and how many investments can offer that kind of upside with relatively low risk?

And don’t forget the bigger picture. Right now, developers are pulling back. Pre-construction sales have slowed dramatically, and few are launching new projects. That means we’re heading into a period of very limited new supply. Fast forward to 2027, and the lack of construction we’re seeing now will start showing up in the resale market. At that point, inventory will tighten, rental demand will remain strong, and prices are likely to rebound—not because of speculation, but because of pure supply and demand.

If you’re already holding a decent unit with solid rental income, now might be one of those rare moments when patience really pays off. Selling now, just because the market feels slow, could mean missing out on long-term gains.

Unless you urgently need the equity—say you’re stuck with a high-interest B-lender or can’t qualify for your next mortgage without liquidating—I’d strongly suggest holding. Rent it out, and let time do the heavy lifting. Don’t let short-term noise dictate a long-term investment.

Bottom line? Think carefully about your reason for selling. If it’s tenant stress, that’s solvable. If it’s financial pressure, relocation, or strategic upgrading, then sure—selling might be worth considering. Otherwise, it may be smarter to ride this cycle out.

Still unsure? Let’s chat. I’m happy to take a look at your numbers and walk you through the options. Sometimes all it takes is a clearer view of the big picture—and a solid plan to match.



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