<p>Condominium housing is a type of housing that differs in terms of administration, resource sharing, and service delivery. This study aims to assess residents’ perceptions of condominium housing and identify key challenges to its sustaining condominium development in Gondar City. A mixed research approach was used, and samples were collected using systematic and snowball sampling methods. The primary data were collected from condominium residents, officials, condominium committees, and fieldwork via questionnaires, interviews, and observations. The secondary data were gathered from various reports via document reviews. These data sets were analyzed using descriptive statistics, binomial logistic regression, and content analysis. The results indicate that approximately 50.29% of respondents had a negative view regarding the quality of the condominiums, 58.24% perceived poor management, and 61.11% believed that owning and renting a condominium is costly. The quality of the condominium house relates to the service, environmental quality, and space. The finding shows that the perception of dwellers on the poor quality of the houses relates to service, environmental quality, and open space. Similarly, ineffective sewerage, community participation, recreation, administration, and noise contribute to the negative perception of residents about the condominium management system. The challenges to sustaining the condominium housing development were affordability, quality of the house and neighborhood, and low loan return. Hence, the policymakers and different stakeholders can take lessons from the findings and design sustainable condominium development strategies. The scholars can use this study as a secondary source or reference for further research.</p>