Quebec’s high-end property market saw a 17.4% increase in median price in 2021
- Quebec’s high-end single-family properties reached a median price of $1,250,000 in 2021, an increase of $185,000 compared to 2020
- The median price of a high-end condominium in the province rose 14.1% year-over-year to $940,000 during the same period
- Home prices in Quebec’s overall residential market saw stronger price appreciation than the high-end property market in most administrative regions
- Strong demand for recreational homes has resulted in higher price appreciation of high-end properties in remote regions
- Montreal’s high-end condominium segment surpassed the $1 million mark in 2021, with a median price of $1,175,000
- The Gaspésie-Îles-de-la-Madeleine region saw the largest rise in the price of high-end homes in the province in 2021, up 34.3% compared to the previous year
MONTREAL, March 15, 2022 – According to the Royal LePage Quebec High-end Real Estate Market Report[1] published today, the price of high-end properties in 2021 continued to grow in all administrative regions of Quebec, although at a slower pace than the overall residential market. Provincially, the price of a high-end property jumped 17.4% year-over-year, while the rest of the market grew 23.7%, compared to 2020.
Characteristics of high-end properties vary widely from region to region. In response to soaring price appreciation in the province’s real estate market, Royal LePage has outlined the high-end market as the top 5% of real estate transactions in each of the administrative regions of Quebec. For the purpose of this report, median prices of single-family homes and condominiums were used.
Quebec’s high-end properties, similar to the overall market, have seen strong demand over the past two years, heightened by the pandemic. The desire to increase living space during lockdown, coupled with the shift in leisure and travel spending towards activities in the home, have largely contributed to the sharp price increase in the upper end of regional markets.
Strong demand for larger properties in the province of Quebec, fuelled in part by buyers’ ability to work from home, has resulted in stronger price appreciation in remote markets than in urban centres. Regions including Abitibi-Témiscamingue, Lower St. Lawrence, Chaudière-Appalaches, Gaspésie and Saguenay-Lac-St-Jean have attracted many buyers with strong purchasing power due to built-up equity from their homes in pricier urban centres.
The highest appreciation rate in the province was seen in Gaspésie-Îles-de-la-Madeleine, where the median price of a single-family high-end home rose 34.3% year-over-year in 2021, to $446,000. Meanwhile, the median price of a single-family high-end home in Montreal increased at approximately half the pace seen in Gaspésie, at 16.9% year-over-year, reaching $2,689,000; representing some of the province’s most sought-after luxury properties.
In many of these markets there is a substantial difference between overall market price growth and high-end property price growth. This is particularly noticeable in the Chaudière-Appalaches region, where prices rose 7.6% in the overall residential market, and 20.9% in the high-end segment.
Montreal’s high-end condominium segment surpassed the $1 million mark in 2021, with a median price of $1,175,000, while Outaouais is the least expensive market to buy a high-end condominium, where the median price of a unit reached $449,900 in 2021. Laval saw the largest median price increase for high-end condominiums, rising 25.4% year-over-year to $831,000.
Regional Analysis
Montreal
During the period analyzed, the median price of a high-end single-family home in Montreal increased 16.9% year-over-year to $2,689,000.
Despite the exodus to the suburbs of some Montreal residents over the past two years, the upper end of the real estate market in the region has hit record prices and sales, as have many other markets in the province, due to the continued imbalance of supply compared to demand.
“The pandemic has unquestionably changed our lifestyles and created new needs, making us realize that our quality of life should come first,” notes Marie-Yvonne Paint, chartered real estate broker at Royal LePage Heritage. “Living space has become paramount, and the luxury segment has also benefited from this strong housing demand influenced by historically low interest rates, causing prices to soar. In Montreal, while we are still seeing very strong sales activity across the luxury market, transactions were lower in 2021 than in the previous year, due to a continued inventory shortage. While some have left the island in search of space, others saw an opportunity to purchase a spacious pied-à-terre in the city.”
The high-end condominium market saw higher price growth in Montreal than the high-end single-family home segment, up 17.5% year-over-year to $1,175,000, during this period.
With over 30 years of experience in the real estate industry, Paint notes that Montreal’s high-end market clients are increasingly younger and often come from the tech and financial sectors.
“Demand and price increases in the luxury market are expected to continue throughout 2022,” says Paint. “When properties are well-maintained and well-located, we see multiple offers, whereas this has not been typical of the luxury segment in the past. The number of days a luxury listing stays on the market has never been so short,” she concludes.
Laurentians
During the period analyzed, the median price of a high-end single-family home in the Laurentians increased 22.1% year-over-year to $1,200,000.
According to Jennifer McKeown, a chartered real estate broker with Mont-Tremblant Real Estate, a division of Royal LePage, while it was very rare to see high-end properties in the region selling above the asking price before the pandemic, today it has become common-place.
“Remote work has definitely prompted many buyers, including in the luxury segment, to choose a home closer to nature,” she says. “Waterfront luxury properties have been especially popular over the last year, perfect for enjoying family time while working remotely.”
In the high-end condominium market, the median price in the Laurentians increased 3.9% year-over-year to $914,000.
“I expect real estate prices in the luxury segment to remain robust due to the continued inventory shortage, but the lifting of public health restrictions should ease the market as consumers return to their pre-pandemic activities. However, some trends acquired during this period will remain. The world has changed and people are thinking more about ways to live as a family, safely,” she concludes.
Estrie
During the period analyzed, the median price of a high-end single-family home in Estrie increased 8.4% year-over-year to $1,200,000.
“The scarcity effect is probably the main factor impacting the price increases of high-end properties in the region,” says Mario Lamirande, co-owner and chartered real estate broker at Royal LePage Au Sommet. “If the property supply in the region is at a historically low level, opportunities to find a waterfront luxury home, for example, are even more scarce, leading to price increases. In fact, when looking for this type of property, you first have to choose the environment in which it is located. The land’s location often accounts for a significant portion of the value, giving the residence its unique feature. Sometimes the dwelling on the property becomes a lower priority since it can be modified and modernized over time.”
Lamirande noted that luxury is not just a price, but a way of life.
“Remote work has completely redesigned opportunities for years to come,” he says. “Since we spend most of our time at home, being able to spend summer vacations there without having to travel provides tremendous flexibility,” he concluded.
Capitale-Nationale
During the period analyzed, the median price of a high-end single-family home in the Capitale-Nationale region increased 8.1% year-over-year to $800,000.
According to Marc Bonenfant, chartered real estate broker at Royal LePage Inter-Québec, the high-end property market in Capitale-Nationale remains extremely active throughout the region.
“Resort regions continue to attract many buyers looking for a lifestyle that can combine remote work and leisure,” he says. “Before the pandemic, properties over $1 million in the region took a long time to sell. Today, a property in this price range, which reflects the current market value, often attracts multiple offers and sells in a matter of days.”
Bonenfant also saw a change in the profile of buyers in the upper end of the market.
“Often the buyers are young couples in their early thirties with children,” the broker says. “For the younger generation, the thirst for home ownership has never been more urgent and defining. They are looking for a luxurious, turnkey property.”
The high-end condominium market also experienced substantial price growth in the Capitale-Nationale region, increasing 8.0% year-over-year to $638,500.
“The luxury segment is expected to remain strong throughout 2022 and will continue to be driven by the shortage of supply in the Capitale-Nationale market,” remarked Bonenfant.
Outaouais
During the period analyzed, the median price of a high-end single-family home in the Outaouais region increased 27.6% year-over-year to $925,000.
“Demand for luxury properties in the Outaouais region is evolving at a pace very similar to the rest of the market,” said Martin Simard, chartered real estate broker, Sirois-Simard Team, at Royal LePage Vallée de l’Outaouais. “Our market remains extremely attractive to Ottawa residents who can afford a better living space on this side of the river. In addition, today’s luxury segment clientele benefits from more equity than ever before to buy a larger property.”
In the high-end condominium market, the median price in the Outaouais region increased 5.9% year-over-year to $449,900.
“As in many markets in the province, the appeal of multigenerational properties has reached a peak,” says Simard, adding that high-end properties often provide the ideal size for these extended families. “Before the pandemic, the trend was towards reducing living space, but the situation has completely changed the criteria in all price ranges. I expect that, as long as the inventory shortage persists, the luxury market will remain largely in favour of sellers,” he concluded, adding that interest rate increases are unlikely to significantly affect this clientele.
Royal LePage’s 2022 Quebec High-end Market Report – Data chart: rlp.ca/table_quebec-highend-report-2022
About the Methodology
The 2022 Royal LePage Quebec High-end Real Estate Market Report provides median prices for single-family homes and condominiums within the top 5% of real estate transactions in each of Quebec’s administrative regions, as well as for the province as a whole. The analysis period extends from March 1, 2021 to February 28, 2022, compared to March 1, 2020 to February 28, 2021. Data was compiled by Royal LePage via Centris.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of more than 19,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women’s and children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a Bridgemarq Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE. For more information, please visit www.royallepage.ca.
Media contact:
Valérie Dupuis
North Strategic
514-622-4843
valerie.dupuis@northstrategic.com
[1] Data compiled by Royal LePage through the Centris system during the 12-month period ending February 28, 2022, compared to the same period the previous year.
