Montreal’s Real Estate Industry No Positive Effect From Foreign Investors

After the introduction of the foreign investors in Canada, the country is still struggling from the effect it has on the two largest real estate markets that are currently in the country. According to the Canada Mortgage and Housing Corp, buyers from the international market has very little effect on the current prices of the houses that are located in the second biggest city in the country, Montreal.

Based on the report that was published Wednesday, the owners of around one per cent of the condominium units that are located in the heart of the Montreal area are not from there but is currently residing outside of the country.

Majority of the properties that are being purchased by foreign investors are condominiums which make up a total of 73 per cent from all the international purchasers. It is then followed by homes that are designed for single family use which make up 23 per cent while the duplexes amount to two or five units which is about 4 per cent. In the beginning, the housing investments that are coming from international investors are greatly focused only on the city of Montreal which makes up 80 per cent of the total properties bought to be coming from inside the municipality.

According to reports from the CMHC, there are also revelations that it is common for foreign investors to buy condos at a higher price compared to the buying price of the local in the area. Take for example the properties that are in the Ville-Marie neighborhood, foreign investors are asked to pay 10 per cent more than the average asking price of a condo unit.

Despite this, CMHC explained that is very little and limited risks when it comes to concerns regarding the presence of the foreign investors in the area since they comprise only a very small per cent of the total property investors.

In another published report, the Teranet-National Bank has released the current house price index and it revealed that on a national scaled, the houses that are located in Canada cost 2.3 per cent more in June compared to May. While in Montreal, the gain was only one per cent but still going strong. For residents planning to settle in Thailand, the East Coast real estate is a good investment.

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