The value of Montreal’s condos is growing more quickly compared to single-family housing assets, if a late August analysis by Royal LePage is any indication.
The study found that a dramatic growth in demand has pushed the average value of Montreal’s condos to go up at least twice as fast as that of single detached housing.
“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,” Royal LePage Altitude broker Maxime Tardif said.
“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.”
From January to July 2019, the median price of the Greater Montreal area’s condos increased by 10.3% annually, up to $286 per square foot. In contrast, single-detached homes had 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 per square foot. Single-family detached properties saw their value rise by 6.9% to $313.
This has spurred intensified development in the region. Among the latest of these is a boutique condo complex in downtown Montreal which broke ground late last week.
Offering a “modern and minimalist” style, the ENCITY project will be highly accessible condominium with close proximity to major transport routes and institutions like McGill and Concordia universities. Construction is scheduled for completion by 2021, with units to be delivered on summer that year.
Another new development is the Solstice Montréal, a 339-unit high-end building located at de la Montagne Street.
The 44-storey tower has officially begun construction, with around $100 million worth of units already having been sold.