Royal LePage Forecasts Healthy Price Appreciation for Luxury Real Estate in Greater Montreal Area
Luxury condominium sales outpace luxury detached house sales in the GMA.
The Greater Montreal Area’s luxury property market showed continued momentum in both prices and sales mirroring its healthy economy and overall real estate market. The median price of a luxury house rose 5.4 per cent to $1,680,942 year-over-year during a twelve-month period ending January 31, 2019 compared to the same period the previous year. Meanwhile, the median price of a luxury condominium surged 8.4 per cent year-over-year to $1,295,401 during the same period.
Among the factors that are impacting luxury prices and sales in Montreal, low inventory ranks first in the luxury detached market according to Marie-Yvonne Paint, real estate broker, Royal LePage Heritage.
“Provincial measures to dampen foreign buyer activity in Toronto and Vancouver have increased demand for luxury property in Montreal, but this demand is mostly seen within the downtown condo market,” said Paint. “We are seeing an increase in demand for presale condo units where investors will buy several units to benefit from a discount.”
During the twelve months ending January 31, 2019, the Greater Montreal Area’s luxury house sales climbed 21.4 per cent year-over-year, while luxury condominium sales in the region surged 28.9 per cent, outpacing the detached luxury segment.
While the luxury condominium market is showing exceptional strength, there is still an excellent selection of listings available, with approximately 350 resale units available in February 2019.
For buyers looking to purchase their first luxury home, Montreal has a lot to offer.
“As a first-time luxury home buyer, the Montreal luxury condo market offers great diversity. Developers are building condos based on the city population, family status and household wealth, often reserving about 30 per cent of their building for luxury units. This is perfectly suitable for those wanting to enjoy luxury living with typical condo amenities and lower maintenance fees. Condominiums that are predominantly luxury units often have significantly higher fees because there are fewer units and more luxury amenities,” added Paint.
When looking to the next twelve months, the median price of a luxury house in the Greater Montreal Area is forecast to increase 6.6 per cent year-over-year to $1,792,037, while the median price of a luxury condominium is forecast to increase 7.7 per cent to $1,395,056 at the end of January 2020.
About the Royal LePage Carriage Trade Luxury Properties Market Release
The Royal LePage Carriage Trade Luxury Properties Luxury Market Release provides information on the two most common types of luxury housing in Canada using lower thresholds of three times the median value of each segment relative to the overall property type’s median home value in that city. Real estate values use company data in addition to data and analytics from its sister company, RPS Real Property Solutions, the trusted source for residential real estate intelligence and analytics in Canada. Commentary on real estate markets are provided by Royal LePage residential luxury real estate experts, based on their opinions and market knowledge. Sales data is compiled by Royal LePage through the Toronto Real Estate Board, Greater Montreal Real Estate Board, Real Estate Board of Greater Vancouver, Ottawa Real Estate Board and Calgary Real Estate Board.
Lower thresholds used for detached luxury homes: Greater Toronto Area ($3,092,476), Greater Montreal Area ($1,235,266), Greater Vancouver ($4,705,050), Calgary ($1,669,041), and Ottawa ($1,420,331). Lower thresholds used for luxury condominiums: Greater Toronto Area ($1,543,909), Greater Montreal Area ($1,002,778), Greater Vancouver ($1,979,978), Calgary ($875,285), and Ottawa ($890,253).
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of more than 18,000 real estate professionals in more than 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women’s and children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services company, a TSX-listed corporation trading under the symbol TSX:BRE.
For more information visit: royallepage.ca.