Foreign buyers in Montreal: limited in number, but increasing

MONTRÉAL, QUÉBEC--(Marketwired - June 22, 2017) - The share of foreign buyers in the Montréal residential market is increasing but remains low overall, according to a new Housing Market Insight (HMI) report released today by the Canada Mortgage and Housing Corporation (CMHC).

After strong growth in 2016, the upward trend in foreign ownership was maintained over the first part of 2017 (January to April). About 235 foreign buyers were recorded in the Montréal area - an increase of nearly 40 percent compared to the same period last year.

CMHC continues to monitor developments regarding the presence of foreign buyers in Montréal's housing market, particularly since the recent introduction of taxes on foreign buyers in British Columbia and Ontario.

Report Highlights

• Buyers from China were a factor in the rise in the number of foreign buyers in the Montréal CMA. They now represent about 17 percent of all foreign buyers in Montréal's residential real estate market, as opposed to less than 10 percent about a year ago.

• From January to April, 2017, 40 percent of Chinese buyers opted for single-family homes compared with 28 percent for U.S. buyers and 17 percent for buyers from France.

• Buyers from China also more often chose homes in the municipalities of the Island of Montréal surrounding the city of Montréal than buyers from the U.S. or France.

QUOTE

"Although the number of foreign buyers has continued to increase in the Montréal area since the beginning of 2017, purchases by foreign buyers represent only about 2% of all transactions in the residential market."

Francis Cortellino, Principal Market Analyst, Canada Mortgage and Housing Corporation

METHODOLOGY

The results published in this report were taken from the Government of Quebec land register data. Please refer to page 4 of the report for more information on methodology and its biases.

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As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

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