According to the latest Centris statistics (Q3, 2018), the ‘plexes showed the highest appreciation rate across all property types (+9%) in the central Montreal area.
With rising prices and sales conditions sitting firmly in a seller’s market, is it a smart move to buy a duplex or multiplex in 2019?
Top Performer in the ‘Plex Market:
Plateau: The average revenue property (two or more doors) appreciated by 14% year over year in the Plateau, and 11% quarterly.
Of notable mention is is Lasalle, where the average ‘plex appreciated by 14% in the third quarter, and 9% year over year.
*These figures are calculated according to Centris Q3 data*
|Average Price||Appreciation (Quarterly)||
|Villeray / Park Ex/ St Michel||$482,000||3%||11%|
|CDN \ NDG||$715,000||12%||3%|
Average ‘plex prices by area (October 2018)
Montreal GMA average: $571,750
- Westmount: $1,382,500
- Outremont: $1,300,000
- Mont-Royal: $1,125,000
- Hampstead: $921,500
- Plateau: $885,000
- NDG/CDN: $678,500
- Cote St Luc: $635,000
- Rosemont: $630,000
- Villeray: $631,500
- Verdun / Ile des Soeurs: $614,575
- St Leonard: $615,000
- Downtown / Old Montreal: $614,575
- Ahuntsic: $600,000
- Pointe-Claire: $590,000
- Saint Laurent: $583,250
- Le Sud Ouest: $514,500
- Dorval: $560,000
- Montreal Ouest: $554,000
- Park Ex: $535,000
- Lasalle: $531,100
- HOMA: $515,000
- Anjou: $508,000
- Pierrefonds-Roxboro: $464,000
- Montreal Nord: $434,500
- Lachine: $435,000
- St Anne de Bellevue: $425,000
- RDP/PAT: $420,000
- Montreal Est: $348,750
- Ile Bizard: $330,000
*Average prices are calculated using Centris data as of October 23, 2018
Duplexes and multiplexes are a safe investment in 2019.
2019 is a good time to secure neglected properties in need of renovation, and bring these properties into full productivity before reselling them at the crest of the cycle.
For a value-added strategy, investors should aim to purchase deals in areas where duplexes are listed below the city average, or to look for distressed properties in sought-after neighborhoods.
Most investors choose to acquire “Core-Plus” properties during this period – investments with less risk than value added properties, at a lower leverage range or 20% to 30%.
Core-plus investments should be located in central areas, or close to public transportation, where long term tenants are easy to come by.