The real estate market in Québec is well positioned to quickly recover from economic damage caused by the COVID-19, according to the different stakeholders consulted by The Newspaper.
According to Royal LePage, the duration of the crisis will dictate the extent of the impact on the market. In cities like Québec and Gatineau, where the government services are an important part of the job, is expected to rebound relatively more quickly after the pandemic.
“It is most encouraging that a few weeks ago. One has the impression that one goes to the good side, ” responded Dominic St-Pierre, vice-president and general manager of Royal LePage for the Quebec region.
The real estate sector welcomes additions to the list of essential services and hope to be part of the next wave. For the moment, it is not possible to physically visit the properties.
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Level ever reached
The activity of sales has registered an increase of 32.8% in Québec in the first quarter of 2020, compared to the same period last year, according to the study on the price and the market forecast from Royal LePage, though it has fallen almost at the neutral since the beginning of the pandemic. During this period, prices remained stable.
“The crisis and post-crisis should be better for Quebec, which could have less impacts than some other regions economically because of the large size of its public sector, jobs from the Laval University and the local health system,” said Mr. St-Pierre.
If the economic activity resumed by the end of the spring, the latter expects a rapid recovery in sales.
“If it is longer, the consequences may be more permanent “, he added.
According to the Association professionnelle des courtiers immobiliers du Québec (APCIQ), 1139 sales were made in the census metropolitan area of Québec last march. It is a level of activity ever achieved for this period since Centris compiles data, maintains the APCIQ.
More hard for other
However, some buyers, who longed to acquire a cottage or a second property, could defer their investment, adds from his side, Martin Rico, president and founder of the firm DeRico Experts-Conseils.
Commercial real estate may also suffer more from the crisis, according to his words.
“In all of my customer, the 1st of April last, this is the third of rents, which has not been paid “, he said.
The companies, which have a low level of liquidity, may find difficult in the months to come. Certain types of businesses, such as restaurants, may not be cost-effective, he said, to 50% of their capacity, with the rules of social distancing.
“When the shops are going to start living again, I am not sure that the owners will all be able to recover three, four, five months of rent not paid “, he predicts.
Data from Royal LePage
(Quebec city region)
- 360 648$ (median price)
- 473 transactions during the first quarter of 2020 (+19% compared to the same period in 2019)
- 276 853$ (median price)
- 693 transactions during the first quarter of 2020 (+ 29%)
- 233 618$ (median price)
- 596 transactions during the first quarter of 2020 ( +51%)