It is not the pandemic that slowed down the luxury real estate market in Quebec in 2020. The number of transactions for properties over a million dollars has jumped by about 50% to set a record .
According to a recent report from the firm JLR, 2,402 single-family homes, condominiums or cottages sold in seven figures last year. By comparison, 1,602 similar transactions were concluded in 2019.
“In terms of quantity, yes, it is the highest number”, confirmed to the Journal Joanie Fontaine, senior economist at JLR, adding that this is also the strongest growth of the last decade. “We expected increases, but it is more important than what we thought. […] There has been an increase every year since 2010, ”she continues.
The biggest sale in Quebec reached $ 18 million in 2020, according to data from the Quebec Land Register. This property, whose transaction is historic, is located in the borough of Ville-Marie, in Montreal.
The firm JLR is of the opinion that due to the impacts of the pandemic, in particular the confinements and the increase in teleworking, several wealthy people reassessed their needs last year. Low mortgage rates have also enabled some to get their hands on more expensive properties.
There has also been an increased appetite for resort properties.
“Many high-income individuals now spend a large part of their day at their home and therefore wish to improve it,” writes in his JLR report, adding that luxury properties are now selling much faster than they are. ‘before the pandemic where they remained on the market sometimes “several months, even years”.
It should also be said that in recent months, several cities in Quebec have recorded spectacular price increases due to supply and demand. According to the Professional Association of Real Estate Brokers of Quebec, the median price of single-family homes climbed 13% in 2020.
In Greater Montreal, the boroughs of Ville-Marie and Outremont as well as the cities of Westmount and Mont-Royal are the places where houses are the most expensive. In the rest of the province, the most expensive properties are located in Austin, Gatineau and Mont-Tremblant.
As for the buyers, the JLR firm mentions that they are mostly Quebeckers or Canadians. Foreign investors from the United States (34) or China (13) in particular have been involved in only 3% of transactions in recent months.
In 2020, the majority of homes over $ 1 million were sold in the census metropolitan area of Montreal. Of the 1,881 single-family homes that changed owners across the province, 72 were purchased for more than $ 3M.
For condominiums, of the 521 transactions, eight exceeded the $ 3M mark. The most expensive condo was acquired in the Plateau Mont-Royal sector. The 410.3 square meter unit was sold for $ 4.75 million.
Between January and December 2020, the median price of luxury single-family residences was $ 1.35 million and that of prestigious condominiums was $ 1.24 million.
–With the collaboration of Philippe Langlois
Number of sales over $ 1 million in Quebec
More in Montreal
Single-family homes in 2020 (+1 M $)
Quebec CMA 45
Montreal CMA 1501
Condominiums in 2020 (+1 M $)
Quebec CMA 12
Montreal CMA 461
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