Forget inflationary pressure, the fear of layoffs and successive interest rate increases. Unlike most Quebecers, who have no financial worries, the super-rich have barely cut their housing budgets this year.
“Quite the opposite,” assures the realtor Joseph Montanaro, who specializes in helping wealthy people find a villa for themselves and their servants, a country estate or a simple second home for millionaires a stone's throw from the galleries and museums of downtown Montreal to the Plains of Abraham in Quebec.
“Since these people do not need to borrow but instead buy cash most of the time, the rise in mortgage rates has very little or no impact on their purchasing intentions. »
– Joseph Montanaro, specialized broker, partner of the RE/MAX agency
ARCHIVE PHOTO
“More than interest rates, it is psychology that influences this niche market,” claims the star broker for the rich and famous, an employee of the RE/MAX agency.
The person Prime Minister François Legault chose to sell his house in Outremont two years ago was involved in the sale of three of the 10 largest real estate transactions of the year in Quebec. On his hunting list in recent weeks: the sale (still not notarized) of a 10-bedroom, seven-bathroom chateau listed off market for $20 million.
From $8.5 to $13.2 million
The top 10 largest real estate transactions in 2023 totaled over $8.5 million, according to a compilation conducted by Le Journal in conjunction with the Quebec Land Registry.
As is often the case, these focused on three specific regions: the island of Montreal in the Westmount and Outremont sectors; the Eastern Townships around Lakes Brome and Memphremagog; and the Laurentians, particularly in Mont-Tremblant.
This latter community, on the edge of the very popular Lac Tremblant, is also where the province's most important sale was completed in 2023. The buyer, a dominant figure in Quebec's business community, agreed to pay $13.2 million to afford this residence discreetly located at the end of a 500m private road in the forest.
SOLD 2023-11-15
$13,200,000
580, Chemin Desmarais
Mont Tremblant, J8E 1E6
- Detached house,
- Year of construction: 1989,
- Municipal assessment:
$6,038,700 (2021)
PHOTO STEVEN LAFAVE, ENGEL & VÖLKERS
Steven Lafave, senior director of Engel & Völkers in Mont-Tremblant, who is closely involved in this transaction, also sees no weakening of interest in so-called resort products among his customers.
He sees many “lateral moves,” entrepreneurs or established professionals (lawyers, tax specialists, doctors) who can afford a second home in the city whose value is at least equal to the value of their primary residence or its suburbs.
An estate consisting of a mansion and no fewer than three guest houses that belonged to the king of Quebec wine imports (Philippe Dandurand) has finally been sold for nearly $12 million on the shores of Lake Memphremagog.
SOLD 2023-09-15
$11,875,000
530-551, Rue Vercheres
Magog, J1X 3M3
- Detached house,
- Year of construction: 2012,
- Municipal assessment:
$10,729,000 (2023)
PHOTO Archimed Studio / Matthieu Delarue
Additionally, the most expensive condo at the former Convent of the Sisters of the Holy Names of Jesus and Mary in Outremont cost $10.78 million.
SOLD 2023-05-11
$10,775,947
1420, Boulevard Mont-Royal No. 915
Montreal, H2V 4P3
- condominium,
- Year of construction: 1924,
- Municipal assessment:
$1,614,900 (2021)
PHOTO Realtor.ca
A lucrative tariff increase
Charles Brant, director of market analysis at the Quebec Association of Real Estate Agents, has noticed an uptick in real estate products aimed at wealthier clients in recent years.
And not only do luxury homes continue to find buyers, they continue to sell at higher prices than in years past. By comparison, three homes in Quebec sold for more than $9.5 million last year alone. In 2023, a much more uncertain year economically, the number of these transactions for the rich has risen to eight.
Daren King, an economist at the National Bank of Canada, is hardly surprised. These big fortunes have wealth far beyond that of the average Quebecer and can take advantage of the current situation to enrich themselves.
“Even though the stock market has slowed, it is now entirely possible to achieve returns of 5% or more with guaranteed investment certificates. »
– Daren King, economist at National Bank
LinkedIn photo
“Instead of punishing them, raising interest rates has the opposite effect of benefiting them,” he said. Even though the stock market has slowed, it is now entirely possible to achieve returns of 5% or more with guaranteed investment certificates. For those with cash, it is an enrichment opportunity that is reflected in maintaining the prices of these apartments.”
– In collaboration with Philippe Langlois