Last week, Mayor Valerie Plante reiterated her plan to implement a foreign buyer tax in Montreal, following Vancouver and Toronto’s lead.
Projet Montreal first proposed such a tax in the spring of 2017, after Montreal’s real estate market started showing signs of overheating.
As in B.C and Ontario, Montreal as a city does not hold the power to instate a housing tax, but instead will have to convince the provincial government to roll the policy out throughout Quebec.
City officials will soon be meeting Quebec’s finance ministry to determine whether action is needed.
“We must avoid at all costs what is happening in Vancouver and Toronto, where 90 per cent of projects are sold to investors.Montrealers must be able to own their own city.” said Laurence Vincent, co-president of real estate developer Prevel, as quoted by Radio-Canada.
Montreal’s current market conditions
Earlier this summer, Canada Mortgage and Housing Corp (CMHC) said Montreal’s real estate market was “close to overheating.”
This year, Montreal emerged as the country’s hottest major city housing market, with home sales jumping 11% in October compared to the previous year. The condo segment is particularly strong, with sales increased up 22% annually.
The condo segment has joined single family homes and ‘plexes in seller’s market territory, characterized by a competitive buying environment, rising prices, and bidding wars.
Economist have cited Quebec’s strong economy and low unemployment rate as reasons for the particularly strong housing market this year.
Faced with new buyer taxes in Toronto and Vancouver, several foreign investors have turned to Montreal’s relatively affordable market.
Chinese real estate portal Juwai cited Montreal as the hottest city in Canada for Chinese real estate investors this summer.
Meanwhile, the Plateau continues to be popular amongst French investors.
According to CMHC, one in eight buildings in downtown Montreal are now sold to non resident buyers.
Montreal still affordable compared to Toronto and Vancouver
Not everyone agrees that Montreal is facing a housing bubble, or that the market is notably heated. The median price of a detached home sold in Greater Montreal in October was $329,250, compared to an average price of $1.019 million in Greater Toronto and a benchmark price of $1.524 million in Greater Vancouver.
What are your thoughts? Let us know in the comments or by email at [email protected]
This article, Montreal May See A Foreign Buyers Tax Soon As Housing Market Overtakes Toronto, Vancouver, appeared first on Shupilov News.