Condo market makes history, hitting new ceiling for price per square foot according to Sotheby’s International Realty Canada
Montreal, Quebec , June 06, 2018 (GLOBE NEWSWIRE) — Montreal’s luxury real estate sale market is on track to set new records in 2018 as sales over $1 million strengthened in the first five months of the year. From January 1– May 31, 2018, 367 residential properties (condominiums, attached homes and single family homes) sold over $1 million, an increase of 17% compared to the same period in 2017. This follows a 20% year-over-year gain in $1 million-plus sales volume from 2016 to 2017, and a 23% year-over-year increase previously experienced in 2016 over 2015.
A new record was set in Montreal’s luxury condominium market with the pre-sale of a 4,015 sq. ft. unit at the Four Seasons Private Residences Montreal by Sotheby’s International Realty Quebec. Originally listed at $8,050,000, the sale set a new record for the highest price per square foot for condo sales in Montreal’s history. Montreal’s residential resale condo market experienced a 7% year-over-year uptick in sales volume over $1 million in the first five months of 2018, with the strongest year-over-year gains in the segment between $1–2 million, which rose 17% to 55 units sold. Five units sold between $2–4 million during this period, down 44% from nine units sold in the first five months of 2017.
The luxury attached home market surged in the first five months of the year, with sales over $1 million increasing 51% year-over-year to 136 units. 21% of these transactions exceeded the list price. The $1–2 million segment of the market saw a 46% increase to 130 units sold, while six units sold between $2–4 million, up from the single unit sold in Jan 1– May 31, 2017. As in 2017, there were no attached home or condominium sales over $4 million within the residential resale market in the first five months of 2018.
Gains in Montreal’s $1 million-plus detached home market were comparatively muted, reflecting inventory constraints and stabilizing demand. 171 homes sold between Jan–May 31, 2018, up a nominal 2% from the 167 units sold over the same months in 2017. Sales in the $1–2 million segment of the market fell 6% year-over-year to 122 detached homes sold, while sales between $2–4 million increased 44% to 46 units sold. Detached home sales over $4 million fell to three units in the first five months of 2018, down from the five sold over the same period in 2017.
“While we are seeing hints that the steep gains in luxury demand will level off as the year progresses, Quebec’s strong economy and freedom from government policy interference has insulated the Montreal market from some of the factors that have moderated the sales in cities such as Toronto and Vancouver,” says Brad Henderson, President & CEO of Sotheby’s International Realty Canada. “Local confidence continues to drive the Montreal market and there is every sign that this will continue.”
Montreal’s top-tier market strength has spurred expansion plans for Sotheby’s International Realty Canada across the region. The company has opened two new offices in Montreal over the past two years and a third office is scheduled to open in fall 2018.
“Our confidence in the Montreal market remains bullish both in the short term and for the long haul,” says Sacha Brosseau, Vice President of Brokerage, Sotheby’s International Realty Canada. “This is exactly why we have added a new office in the region every year for three consecutive years. Our newest office, opening in fall 2018, increases our ability to serve clientele as the city’s luxury market continues to extend into new areas.”
In 2016, Sotheby’s International Realty Quebec opened its West Island office to service a market that has seen an influx of affluent young professionals, as well as an uptick in international interest. In 2017, a second office opened in Westmount to expand services to clientele in the neighbourhood. This coming fall, in anticipation of the highly awaited development
of Royalmount, a multifunctional urban project that will include hotels, offices, commercial establishments, restaurants, cinemas, concert halls and other types of entertainment, Sotheby’s
International Realty Canada will open its newest office on Rue Ferrier, one of the main arteries leading into the project. This office will service nearby neighbourhoods including Outremont, Town of Mount Royal, City of Cote Saint-Luc, and Saint-Laurent.
About Sotheby’s International Realty Canada
Combining the world’s most prestigious real estate brand with local market knowledge and specialized marketing expertise, Sotheby’s International Realty Canada is the leading real estate sales and marketing company for the country’s most exceptional properties. With offices in over 30 residential and resort markets nationwide, our professional associates provide the highest caliber of real estate service, unrivalled local and international marketing solutions and a global affiliate sales network of over 950 offices in close to 70 countries and territories to manage the real estate portfolios of discerning clients from around the world. For further information,
The information contained in this release references market data from MLS boards across Canada. Sotheby’s International Realty Canada cautions that MLS market data can be useful in establishing trends over time, but does not indicate actual prices in widely divergent neighborhoods or account for price differentials within local markets. This release is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information and analysis presented in this release, no responsibility or liability whatsoever can be accepted by Sotheby’s International Realty Canada or Sotheby’s International Realty Affiliates for any loss or damage resultant from any use of, reliance on, or reference to the contents of this document.
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