Although there are many large construction projects underway in Montreal, demand is outpacing supply in the condo market. Condo supply hit an 8 year low in June – with 27.72% fewer condos compared to the same period last year.
A recent report by Altus Group found that the number of unsold units in recently finished or in construction condo projects dropped 43% in the past year.
The number of active condo listings in Downtown Montreal has been on a downward trend since 2014. This spring, there were only 60 new condo units available for purchase, which is 54% fewer than last year.
Source: Centris. Area: Downtown Montreal
How has Montreal’s condo market evolved?
- Between 2013 and 2015, overbuilding in the condo market resulted in an oversupply of unsold condos.
- In 2016 the market begins to pick up, but remains a buyer’s market.
- In 2017 the market becomes tighter as investors from overheated Canadian markets look to Montreal for affordable opportunities.
- In 2018 the condo market on Montreal Island shifts into seller’s market territory. Supply drops, competition is heightened among buyers, and the occurence of bidding wars increases in the resale market.
Current trends in the new condo market
In Montreal’s Downtown core, it is becoming increasingly common for promoters to sell out before officially opening a sales office.
85% of units in new construction projects in Downtown Montreal are already sold, a 12% increase compared to 2017.
The market is also active in Town of Mount Royal, and around the future REM stations.
Price growth has been accelerating across Montreal, driven by higher competition among buyers.
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