Consumer demographics are a major driver of activity
Reflecting much intensified demand for the asset class, Montreal’s condos saw their median price grow at twice the rate of single-family detached housing.
According to a new analysis by Royal LePage, the median price per square foot of the Greater Montreal area’s condos went up by 10.3% annually (up to $286) during the January-July period. To compare, single-detached homes saw 5.2% growth during the same time frame.
In the City of Montreal, the condo median price increased by 7.9% year-over-year to $433. Single-family detached properties saw their value rise by 6.9% to $313.
These trends shouldn’t come as a surprise considering the market’s demographics, Royal LePage Altitude broker Maxime Tardif said.
“Baby boomers looking for smaller units, millennials increasing their purchasing power, and more foreign buyers contributed to a hike in condo prices and demand in the past three years,” Tardif stated.
“Available land is limited on the island; builders and developers are making every square foot count. As a result, more high-end, spacious units are being constructed in the suburbs, particularly near transit stations.”
Tardif added that locales such as Mercier, Maisonneuve (east of Viau Street), Ahuntsic, Lachine, and Lasalle can expect to enjoy greater activity, considering their enticing price-to-size ratios.
“The outskirts of the city are becoming attractive to many home buyers who are willing to trade shorter commute times for more square footage and better affordability. With the transit system expansion that the REM will bring by 2021, commuting to the city core will be easier and make living outside the city centre more desirable.”
