Many people and many economic sectors have been impacted by the pandemic, but the market for high-end properties seems to have escaped relatively unscathed. There has even been a rise in sales over the last few months.
From January to May 2020, the luxury home market in Quebec jumped by 27% compared to the same period in 2019, according to data from JLR. Specifically, 571 properties worth over $1 million were sold (including taxes) while in 2019, only 451 such transactions were concluded.
The Wealthy Are Unaffected
The main reason why sales for these types of properties has increased is the specific pool of buyers it attracts. High-income earners in Quebec are often shielded from the negative consequences of economic downturns, even in times of crisis such as the pandemic. Since these affluent classes retain their purchasing power, the market remains healthy. And right now it is actually growing, with more owners looking for a home that suits their new needs, like direct access to nature.
Luxury Cottages Are in High Demand
During the pandemic, many people decided to leave the cities. Suburban and rural areas that provide easy access to nature and outdoor activities have grown in popularity. Cottages have also seen an increase in sales in recent months. It should be noted that because regular travellers and holiday takers are now grounded, more people have been able to afford a secondary residence.
Robust Market in Montreal
While there has been a rise in the sale of luxury properties in almost every region in Quebec, Montreal saw the most impressive spike: 53% over the previous year. Specifically, 169 homes were sold from January to May 2019 compared to 258 over the same period in 2020. A residence in Saint-Raymond, in the Portneuf area, sold for a record $1.37 million.
Islands Are All the Rage
If luxury properties are selling quickly, purchase offers for island also increased in 2020 and the trend continues in 2021. There are several private islands across Canada and Quebec, including in Georgian Bay in Nova Scotia, in the St. Lawrence River and in northern Quebec. The prices of these real estate gems cut off from civilization are often in the 7-digit range.
Fewer Foreign Investors
We know that Canada is an attractive country for foreign investors. Many of them purchase residences and buildings — frequently in the high end of the property market — on Canadian soil. Due to the pandemic, however, the demand from this type of buyer has slowed down, but it would not be surprising if it were to pick up again, when public health measures allow.
If you’re on the lookout for your new slice of heaven in Canada, you can count on a RE/MAX broker to find you the perfect luxury home. The RE/MAX Collection is currently full of prestige properties for sale. Go have a peek!