Over the last decade, several major Canadian cities have experienced an unprecedented real estate boom. If we look at Toronto and Vancouver, prices have soared astronomically as more people are moving to metropolitan areas, backed with a strong interest from foreign proprietors. Now it’s Montreal’s turn, as a new article by the Montreal Gazette revealed the city’s real estate market is heating up. Today, we’re breaking down the facts from the article.
A representative from the Quebec Federation of Real Estate Boards stated in the article there’s currently a high demand but a low supply, meaning this directly benefits sellers. It also drives up the prices of houses and condos, creating bidding wars amongst buyers.
Moreover, condo sales increased by 24 per cent, with the average price of a unit rising by 2 per cent to cost approximately $256,000. This can be attributed to the numerous construction projects currently underway across this sprawling metropolis. Many neighbourhoods are being gentrified, and old buildings are being converted to living spaces.
A great example of one of these stunning transformations can be seen in DevMcGill’s Castelnau Phase IV project, which converted a beaux-arts building into a beautiful condominium. The building was once part of the Institution des Sourds-Muets, where deaf and blind individuals lived and worked as skillful artisans. The history of the building is carefully preserved and incorporated into the new construction, as it’s important to continue to innovate while keeping in touch with the past.
If we switch gears and look at the housing market, there’s clearly a boom in the sector as well. Housing prices increased by 16 per cent in the metropolitan area of the city (which includes the outlying suburbs), with prices rising by nearly 21 per cent on the island of Montreal itself.
This boom can be attributed to Montreal’s strengthening job market, as more employment opportunities draw Quebecers from outlying areas to the city. This also means people are making their mortgage payments because they have jobs, so there are fewer foreclosures across the board.
Lastly, we have to look at the aspect of foreign investment supporting Montreal’s real estate community. According to another report by the Montreal Gazette, the number of foreign buyers increased by 40 per cent between January and April 2017.
The Chinese represent the majority of foreign investment, as Montreal is now more appealing compared to other major Canadian cities such as Vancouver and Toronto. It’s also important to note that foreigners have to pay a special tax in the two aforementioned cities, which is another leading reason why internationals are flocking to our city.
If you’re currently looking to purchase a condo in Montreal, you should check out one of DevMcGill’s projects. With multiple construction developments unfolding in different neighbourhoods across the city, there’s definitely a condo out there to suit everyone. Contact one of our sales representatives today by calling 514-288-4737.
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