Ontario's 2026 HST relief on new homes runs out as the purchase price climbs from $1.5 million toward $1.85 million. Once a new condo is priced at $1.85 million or more, the enhanced provincial rebate is gone. Only the long-standing Ontario new housing rebate remains, and it is capped at $24,000. In most of Toronto, that range is a footnote. In Yorkville, it falls right where the condo market splits.
That split is the clearest way to read the neighborhood right now. Buyers say a building's name has always mattered here, and it still does. But this year, the size of the unit inside the building has done more to set its price. Compact luxury suites are trading well below their 2021 prices. Very large suites and penthouses are setting records. The tax rules and the supply pipeline both reinforce the gap.
Where the 2026 Relief Stops
Two programs matter for anyone pricing a new Yorkville suite from a builder. For agreements signed between April 1, 2026 and March 31, 2027, the Ontario Enhanced New Housing Rebate applies to a home bought as the buyer's or a relation's primary residence. It is not limited to first-time buyers. Here is how the bands work, according to the Canada Revenue Agency's published notice:
- Up to $1 million: the full 8% provincial portion of HST, to a maximum of $80,000
- Above $1 million to $1.5 million: a flat $80,000
- Above $1.5 million and below $1.85 million: a partial rebate
- $1.85 million and above: no enhanced rebate, only the existing Ontario new housing rebate of up to $24,000
A second provincial program, the Ontario New Home Affordability Payment, adds up to $50,000 toward the 5% federal portion. It is paid in full up to $1.5 million, tapers from there and stops at $1.85 million. The federal first-time buyer rebate tapers out sooner and reaches zero at $1.5 million. For a builder purchase to qualify for the provincial enhancement, construction must begin by December 31, 2028, with substantial completion by December 31, 2031.
When Ontario announced the expansion, it put the combined maximum at $130,000 for homes up to $1.5 million. Relief then steps down to $24,000 at $1.85 million and above. This post explains how the rules are built. It is not tax advice. Eligibility depends on facts specific to each purchase.
So in a neighborhood where a 2,000-square-foot suite easily clears $1.85 million, the program that lifted new-condo sales across the region in 2026 does not reach the units that define Yorkville's top end.
Below the Line, the Pied-à-Terre Suite
The lower end of Yorkville luxury has carried the downturn. This summer the Toronto Star reported on a one-bedroom of more than 1,000 square feet in a full-service building near Bloor Street West and Avenue Road. It resold for well below its 2021 purchase price. The building offers 24/7 concierge, valet parking, an indoor pool, two gyms and guest suites. None of that protected the unit's price.
Measured against the city, that unit fell 24% between December 2021 and July 2026. Toronto's condo market overall fell about 8% over the same span, based on Toronto Regional Real Estate Board data cited by the Star. Measured from the February 2022 peak, the broader drop was 18%. This premium one-bedroom fell further than the average Toronto condo.
The Star's sources described a specific weakness. Large one-bedrooms in Yorkville have long served as pied-à-terre suites, bought as a city base by owners who spend much of their time elsewhere. Industry sources quoted in the article said return-to-office mandates and less winter travel to Florida cut into that buyer pool. They also said those buyers have shifted toward two-bedroom layouts, which have become more affordable over the past 18 months. One sales executive told the paper the one-bedroom segment was hit "more severely" than the rest.
Above the Line, Scarcity Sets the Price
The same Star article records two very different sales. In April 2026, a penthouse of more than 5,000 square feet at 181 Davenport Rd. sold for about $15.5 million. Its listing agent called that the highest resale price ever recorded in Yorkville. In June, a suite of about 5,000 square feet at the Four Seasons sold for $10.25 million.
The explanation in the reporting comes down to supply. Suites of 2,000 square feet or more in walkable locations have held their value better because there are so few of them. The paper also notes that wealthy buyers face less pressure to transact quickly. The Star's sources add that resales at the Four Seasons price level don't happen often in Yorkville, so a seller at that size faces very few comparable listings.
Across the region, the top of the market is a separate pool. TRREB's September 2026 figures show 1,316 GTA condo-apartment resales at an average of $605,257, down 7.7% from a year earlier. Eighteen of those sold for $2 million or more. Seventeen sold between $1.5 million and $2 million: eight from $1.5 million to $1.75 million and nine from $1.75 million to $2 million. So the GTA recorded more condo resales above $2 million in September than in the $1.5 million to $2 million band, the same range where the rebates on new homes taper out.
The District Numbers Show Both Markets at Once
Yorkville falls within TRREB district C02. That district also covers a wider area than Yorkville itself, so its figures describe the surrounding market rather than any one block. Even so, the shape is consistent from month to month.
| Period | C02 condo sales | Average price | Median price | Active listings | Avg. days on market |
|---|---|---|---|---|---|
| Q2 2026 | 122 | $1,287,436 | $822,500 | 239 | 43 |
| July 2026 | 50 | $1,377,354 | $862,995 | 226 | 49 |
| August 2026 | 29 | $1,176,021 | $740,000 | 204 | 35 |
| September 2026 | 30 | $1,690,737 | $1,237,500 | 237 | 52 |
In every month shown, the average sits roughly $435,000 to $515,000 above the median. A small number of very large sales pull the average up, while most transactions happen well below it. In a district this size, a handful of big-unit closings can move the monthly figures. That is why September's average of $1,690,737 looks so different from August's $1,176,021, even though each month had about 30 sales. A single district median blends the two markets together, and neither one actually trades at that price.
Why New and Resale Sit So Far Apart
The resale split helps explain the new-build market. Urbanation's Q2 2026 condo survey found that GTHA new-condo sales rose 52% year over year to 702 units. Completed projects accounted for 535 of them, while pre-construction sales fell 80% to 50. Completed, unsold developer inventory reached a record 5,001 units. Their average asking price was $1,186 per square foot, a record 43% premium over the $830 resale average in recently registered buildings. Urbanation also reported that developers negotiated below asking after the HST announcement, and some bulk deals closed below resale prices.
That survey covers the full region and is the most recent quarterly release, from July 2026. It still clarifies the choice at Yorkville's top end. Below $1.5 million, a new suite can carry substantial tax relief that narrows the gap with resale. Above $1.85 million, the new suite has to compete with resale on price alone.
Fewer new suites are coming, too. Urbanation counted the GTHA pipeline at 48,710 units in Q2 2026, down 37% in a year, with 11,653 units cancelled since the start of 2024. In Yorkville, the projects still under construction are mostly at the top end:
- 50 Scollard: Lanterra's 41-storey, 130-suite tower. UrbanToronto reported on October 9, 2026 that cladding had reached the crown and landscaping of the piazza was underway.
- The One, 1 Bloor Street West: an 85-storey condo, hotel and retail tower, with construction continuing under Tridel. A court monitor's report dated September 8, 2026 said the curtainwall had reached level 84, with the building envelope expected to be complete by the end of October 2026. All 314 prior sale agreements slated for disclaimer had been disclaimed, and $86.4 million in deposits had been refunded to 270 purchasers. A branded sales centre is being prepared for a relaunch. The filing gives no relaunch date and no new pricing.
Once The One reopens sales, a large block of new luxury inventory will reach the market priced well above the rebate bands. For now, there is no public price list to compare against resale.
Questions Buyers Ask About This Split
Does the 2026 HST relief apply to a $2 million new Yorkville condo? The enhanced Ontario rebate and the Ontario New Home Affordability Payment both stop at $1.85 million. An eligible owner-occupier may still qualify for the existing Ontario new housing rebate of up to $24,000.
Do the rebates apply to resale condos? These programs cover homes bought new from a builder, or new or substantially renovated homes.
Is C02 data the same as Yorkville data? No. C02 is a TRREB district that includes Yorkville and areas around it, so its averages describe the wider district.
In a market where a few hundred square feet can decide whether a suite trades at a discount or at a premium, valuation has to be done one unit at a time. If you own a Yorkville suite, or you are weighing a new building against an established one, Barry Cohen Homes can prepare a complimentary valuation based on suite size, layout and comparable sales in your building. Schedule a confidential consultation to review the numbers privately.
