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Montreal Luxury Attracts Overseas Property Investors

Montreal Rue Crescent

Montreal luxury real estate has emerged as a strong leader in Canada according to the latest report from Sotheby’s International Realty Canada.

Whilst luxury real estate transactions in the previous Canadian hotspots of Vancouver and Toronto have been falling, Montreal is going from strength to strength.

Sales of condominiums and houses over $1 million in Toronto fell 27 per cent In July and August, compared to the same months the year before, according to the report. Transactions of properties over $4 million in the city fell by nearly the same amount – 28 per cent.

Likewise in Vancouver, the report showed that sales of luxury real estate over $1 million dropped 23 per cent in the first half of the year compared to 2016. Though, sales increased five per cent during July and August, compared to the same months last year.

Both Vancouver and Toronto have suffered from an extra 15 per cent levy imposed on overseas property investors by their respective governments.

Brad Henderson, CEO of Sotheby’s International Realty Canada, said: ‘The psychological confidence that people had in the marketplace was shaken by all of the different factors that were put in there.’

However, Sotheby’s expects Canada’s strong economic performance to boost the market countrywide in the coming months, and expects ‘a brisk and active’ market for luxury real estate in Toronto this fall and for Vancouver to regain momentum.

In Montreal meanwhile, sales of condominiums and homes over $1 million jumped by a massive 60 per cent year-on-year this July and August.

The Sotheby’s report forecasts that montreal will ’emerge as a strong leader on Canada’s luxury real estate landscape this fall’.

The company rejected the idea that luxury property sales growth in Montreal is coming primarily from overseas property investors who have moved away from the Vancouver and Toronto luxury property markets, stating that Montreal is an attractive place to live and work, with the added bonus of having comparatively less expensive real estate prices..

However, the report does cite some anecdotal evidence of ‘an uptick in interest from foreign buyers seeking residences’.

It looks like Montreal is ‘ticking the boxes’ for overseas property investors looking for luxury real estate.

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