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Montreal’s luxury home market continues to boom

A house for sale in the Westmount suburb of Montreal is shown on December 11, 2015. Ryan Remiorz/The Canadian Press

The real estate firm Royal LePage says the metropolitan area of ​​Montreal has posted the highest appreciation of prices in Canada in the past year in the high-end property categories.

During the 12-month period that ended on Jan. 31, the prices of luxury homes in Greater Montreal increased by 8.5 per cent, while those of high-end condominiums increased by 8.3 per cent.

READ MORE: Montreal home sales jump 26 per cent in December

Dominic St-Pierre, vice-president and general manager of Royal LePage for Quebec, points out that in the luxury properties segment of the Greater Montreal-area market, it seems that prices are experiencing the same momentum as in the more general residential real estate.

Royal LePage has noted that demand for well-established high-end sectors, such as the city of Westmount and the Montreal borough of Outremont, remains stable.

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There was a boost in the category of luxury properties in areas such as the Plateau-Mont-Royal and Griffintown. Luxurious West Island residences remain popular, especially due to the quality of the schools and the views of the water, features that would be popular with wealthy newcomers.

READ MORE: More workers using cars to commute as urban sprawl grows in Montreal, study says

Royal LePage also observed that the lack of confidence among sellers is a factor that greatly contributes to the reduced supply of luxury properties in the Montreal region. They are worried that they will not find what they are looking for after their current home is sold, and most are concerned about rapid price increases.

Royal LePage forecasts that over the next 12 months, the median price of a luxury home in the Montreal region will increase by 5.5 per cent to $1.955 million, while that of a high-end condominium is expected to rise five per cent to $ 1.48 million.

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