Fini, the reign of the condo in Montreal

selon-societe-canadienne-hypotheques-logementThe condo craze shows serious signs of slowing in Montreal. The number of housing starts fell by 46% since the beginning of the year, and for the first time in a quarter century, he has built more rental units as condominiums in the metropolitan area.

According to the Canada Mortgage and Housing Corporation (CMHC), 3,335 condos have been started from January to July, 3504 against renting apartments. During the same period last year, there were 6147 instead of condos and rental housing in 1922, a major trend reversal.

“The years 1989-1992 were the last years when we had more than rental condos in Montreal, explained yesterday David L’Heureux, Chief Analyst at CMHC. Since that time, it has always been more condos than apartments [rental] every year. ”

The proliferation of rental projects demonstrates the renewed appetite of consumers for new apartments. Canvar The group has launched two rounds of forty floors in downtown – which also includes a hotel component – while Devimco began construction of an apartment complex in Griffintown.

Much of the observed increase is however attributable to retirement homes. This segment represents almost 2,000 rental units on 3504 Starts from the beginning of the year in Greater Montreal.

Frenzy

The enthusiasm of residential developers is undeniable. Selecting network, for example, erects these days in Rosemont a complex of 250 million dollars, the largest of its kind in Quebec, where 1,000 apartments will be reserved for seniors. The Laval group has many other projects under construction or on the drawing board.

“With nearly 1,300 housing starts in Greater Montreal and 2100 in Quebec, we are faithful to our development plan adopted in 2013, the construction of 30 new housing complexes for retirees by 2019, with investments totaling nearly $ 2 billion, “said Gaetan Cormier, Executive Vice President, Development at Network Selection.

Promoters show themselves too enthusiastic? Hélène Bégin, Senior Economist at Desjardins Group, seems to think so. “It amazes me to this point, since the market for nursing homes is still saturated in some areas.”

However, Hélène Bégin judge salutary decline by 46% the number of condos observed since the beginning of the year in Montreal. This decline will some rebalancing of the market, where the supply of condominiums remains abundant and time of sale, sometimes very long.

According to data released yesterday by CMHC, the monthly number of seasonally adjusted and annualized set construction – which roughly corresponds to the pace of activity over one year for all types of properties – totaled 25,744 in July as Greater Montreal, against 25,182 the previous month.

The actual data, the number of buildings started, reached 2219 last month in the metropolitan area, in July 1762 against 2014. CMHC explains this increase by the strong construction of residences for the elderly.

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