Montreal Real Estate Forecast: Should I Buy A Duplex or Multiplex in 2019?

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According to the latest Centris statistics (Q3, 2018), the ‘plexes showed the highest appreciation rate across all property types (+9%) in the central Montreal area.

With rising prices and sales conditions sitting firmly in a seller’s market, is it a smart move to buy a duplex or multiplex in 2019?

Top Performer in the ‘Plex Market:

Plateau: The average revenue property (two or more doors) appreciated by 14% year over year in the Plateau, and 11% quarterly.

Of notable mention is is Lasalle, where the average ‘plex appreciated by 14% in the third quarter, and 9% year over year.

*These figures are calculated according to Centris Q3 data*

Average Price Appreciation (Quarterly)
Appreciation (Annual)
Plateau $845,000 11% 14%
Villeray / Park Ex/ St Michel $482,000 3% 11%
South West $539,000 11% 10%
Rosemont $632,500 6% 9%
Montreal Island $561,000 8% 9%
HOMA $489,000 5% 9%
Lasalle $555,000 14% 9%
Ville Marie $558,750 7%
Lachine $405,000 7%
Verdun/Nun’s Island $570,000 7%
CDN \ NDG $715,000 12% 3%


Average ‘plex prices by area (October 2018)

Montreal GMA average: $571,750

Areas with ‘plex prices above city average:
  • Westmount: $1,382,500
  • Outremont: $1,300,000
  • Mont-Royal: $1,125,000
  • Hampstead: $921,500
  • Plateau: $885,000
  • NDG/CDN: $678,500
  • Cote St Luc: $635,000
  • Rosemont: $630,000
  • Villeray: $631,500
  • Verdun / Ile des Soeurs: $614,575
  • St Leonard: $615,000
  • Downtown / Old Montreal: $614,575
  • Ahuntsic: $600,000
  • Pointe-Claire: $590,000
  • Saint Laurent: $583,250
Areas with ‘plex prices below city average:
  • Le Sud Ouest: $514,500
  • Dorval: $560,000
  • Montreal Ouest: $554,000
  • Park Ex: $535,000
  • Lasalle: $531,100
  • HOMA: $515,000
  • Anjou: $508,000
  • Pierrefonds-Roxboro: $464,000
  • Montreal Nord: $434,500
  • Lachine: $435,000
  • St Anne de Bellevue: $425,000
  • RDP/PAT: $420,000
  • Montreal Est: $348,750
  • Ile Bizard: $330,000

*Average prices are calculated using Centris data as of October 23, 2018

Conclusion

Duplexes and multiplexes are a safe investment in 2019.

2019 is a good time to secure neglected properties in need of renovation, and bring these properties into full productivity before reselling them at the crest of the cycle.

For a value-added strategy, investors should aim to purchase deals in areas where duplexes are listed below the city average, or to look for distressed properties in sought-after neighborhoods.

Most investors choose to acquire “Core-Plus” properties during this period – investments with less risk than value added properties, at a lower leverage range or 20% to 30%.

Core-plus investments should be located in central areas, or close to public transportation, where long term tenants are easy to come by.

Find a duplex, triplex or multiplex for sale in Montreal

 

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