QFREB recently published a market report on ‘plex performance in Montreal and surrounding areas.
Plexes are small rental properties with two to five dwellings. Their popularity has soared in Quebec’s resale market over the past twelve months.
The report looks at:
- Appreciation rates and market conditions for the plex segment
- Factors relating to supply and demand of this property type
- Average prices per dwelling in different areas, according to building size
Over 7,068 plexes were sold in Québec since July 2017, which is a 4% increase over the same time period.
Of all Québec territories, Saint-Jean-sur-Richelieu registered the largest jump in plex sales (42%).
|Sales||Active Listings||Average Price||Average Selling Time|
|Quebec (Province)||7,068||4%||5 827||-6%||$408,203||7%||100||-4%|
|Montréal Metropolitan Area||4,413||6%||2 349||-12%||$520,986||7%||79||-8%|
|Island of Montréal||3,151||6%||1 428||-17%||$570,223||8%||73||-9%|
|South Shore of Montréal||480||6%||330||-4%||$403,762||8%||85||-13%|
|North Shore of Montréal||381||-2%||298||-5%||$374,028||5%||99||3%|
- Island of Montreal and the Montreal Metropolitan Area are the only seller’s markets across Quebec, for the ‘plex segment.
- Prices are highest on the Island of Montreal
- Plexes take the longest time to sell in Saint-Jean-sur-Richelieu, and the fastest time on the Island of Montréal.
The ‘plex market has seen significant appreciation rates in Quebec in the last 12 months. The largest price increases were recorded on Montreal Island (8%) and Gatineau (6%).
Of the different types of ‘plexes, triplexes registered the strongest price increase across the province of Quebec, at 9%.
On the Island of Montreal, triplexes (10%) and four-plexes / quadruplexes (11%) performed best.
Quadruplexes performed best on the South Shore of Montreal, recording a 13% increase year over year.
Generally speaking, the price per dwelling decreased as the size of the building increased, since the land is spread over a larger number of dwellings.
|Island of Montréal||255,271||7%||$202,145||-10%||$171,630||11%||$164,427|
|North Shore of Montréal||$125,494||7%||$139,445||2%||$109,040||1%||–|
Montreal was the only area in Quebec where the plex resale market favoured sellers. A seller’s market indicates that prices are high and increasing, inventory is low, and demand / competition is high among buyers. This gives sellers the upper hand in negotiations, and reduces the time required to sell a property.
Notably, the City of Montréal contains nearly 36% of all ‘plex inventory in Quebec.
Plex performance is driven by a strong rental market
Plexes are generally purchased by small investors, because of the income they can generate when rented out.
Montreal’s rental market performed particularly well in 2017. Close to 63% of Montrealers rent rather than buying, marking one of the lowest homeownership rates in Canada. Because of this, vacancy rates average around 2.5% in the city, making rental properties a low risk investment option.
Plexes also appeal to large households who want to settle close together in saturated parts of the city. Families can occupy the same building while maintaining a higher degree of privacy compared to a multi-family home.
How has the market changed over the past decade?
Over the past ten years, plex prices have increased more significantly than those of single family homes and conditions.
Montréal and Québec City both recorded a 55% percent increase in prices between 2007 and 2017.
Read more via FCIQ.ca.
This article, A Look At Montreal’s Plex Market – Duplexes, Triplexes and Multiplexes, appeared first on Shupilov News.