Lifetime Developments and DiamondCorp have launched construction of a major waterfront condominium project in downtown Toronto, pressing ahead with a large-scale build despite a broader slowdown in the condo market.

The two developers have broken ground on Q Tower, a 60-storey residential building planned for 200 Queens Quay West that will deliver nearly 980 condominium units and more than $295 million in city-building contributions. Construction costs are estimated at more than $640 million, with completion targeted for early 2030, a timeline the developers say positions the project to meet longer-term housing demand in Toronto.

New condominium sales in the Greater Toronto Hamilton Area sank to a 35-year low in 2025, marking the fourth consecutive annual decline in activity, Urbanation reported recently.

New condo-apartment sales in the GTHA fell 60% from 2024 to just 1,599 units, the weakest annual result since 1991, according to Urbanation’s year-end 2025 condominium report. Sales were 91% below the 10-year average and have dropped 95% since 2021. Market conditions showed no improvement late in the year, with only 262 units sold in the fourth quarter, the lowest quarterly total since 1990.

Provincial officials framed the Q Tower project as an example of policy-driven acceleration in housing delivery.

“Ontario needs more housing, and homebuilders like Lifetime Developments and DiamondCorp are delivering,” said Rob Flack, minister of municipal affairs and housing. “Through the Protect Ontario by Building Faster and Smarter Act and most recently, Bill 60, Fighting Delays, Building Faster Act, 2025, we are creating the conditions to get more shovels in the ground on much-needed projects like this that will open up opportunities for Ontario families.”

Designed by Wallman Architects with interiors by U31, the tower will include a mix of residential suites and amenities and is located near Union Station, Scotiabank Arena and the PATH system. Lifetime Developments Principal Brian Brown said the timing is deliberate.

“With Toronto continuing its rapid growth and expansion, Q Tower is arriving at precisely the right time,” he said. “Breaking ground this year ensures we’re ahead of the curve in delivering much needed housing to meet demand through 2030.”

DiamondCorp president Ty Diamond said the project stands out in a market where few developments are expected to reach completion this decade.

“In today’s market, where few projects will reach completion by the end of this decade, Q Tower distinguishes itself as a rare and dependable project,” he said. “But what truly defines it is the long-term benefits it brings to Toronto’s harbourfront.”

An economic analysis by Altus Group estimates the project will generate approximately $295 million in direct economic benefits for the city, including development charges, levies and taxes.
“Our analysis confirms that Q Tower will deliver approximately $295 million in direct economic benefits for Toronto,” said Koover Vohra, senior director at Altus Group. “The city alone is projected to collect over $10 million in property taxes during the development period, followed by $6.7 million annually upon completion.”

Sales for Q Tower are underway, with suite prices starting from $599,900.

“As the condo market enters the fifth year of its largest ever correction, the duration of this downturn should be a significant cause for concern as it relates to future supply,” Shaun Hildebrand, president of Urbanation, said recently.

Project cancellations hit a record high in 2025, with 28 active developments comprising 7,243 units cancelled during the year—more than double the number of units cancelled in 2024 and exceeding the previous peak set in 2018. Eight cancelled projects totalling 2,189 units were converted to purpose-built rental, adding to conversions recorded the year before.

The shift to rental, due to poor presales, was not enough to offset a sharp pullback in condo. Condo starts fell 63% year over year to 3,272 units, a multi-decade low, while purpose-built rental starts rose 24% to a multi-decade high, said Urbanation. Over the past three years, condo starts have plunged 88%, reducing the number of units under construction to a 10-year low.

Developers launched only 10 new condo projects in 2025, with just 22% of units sold. Average selling prices for new launches declined to a five-year low of $1,123 per square foot, yet new condos continued to trade at a significant premium to comparable resale units.

“What we don’t know is how far into the 2030s the supply crunch will last. If rental construction can’t fill the void, this raises serious questions around the impact on affordability.”

Pictured: Q Tower project under construction in downtown Toronto.

Photo: CNW Group/Lifetime Developments