Real estate overheating: an abandoned triplex is for sale for more than $ 675,000

Who is feeling lucky ? Barricaded windows and doors, graffiti covered walls and torn floors: a triplex abandoned for years in Montreal is now for sale for the modest sum of $ 676,500.

“We do not know what happened with this building to make it in this state, but the doors and windows have all been barricaded to prevent the junkies enter it, ”admits RE / MAX broker, Thi Thanh Quach, who has just received the brokerage contract for this three-unit building.

“We haven’t been able to visit the building yet, but yes, it needs a lot of work,” says Mme Quach, who adds that it is “quite exceptional” that such a decrepit building is put up for sale.

This property on rue de Rouen, in the Ville-Marie sector, is sold by the public curator of Quebec. And “when the curator hands over a property, we do not have details of its history,” specifies Mme Quach. He tells us: here is the building, the price and the conditions. “

In particular, floors of the property were torn off.

Courtesy photo

In particular, floors of the property were torn off.

It is therefore impossible to know why this property found itself in such a state of disrepair. But it seems that the asking price for the building that has appeared in the Inventory of vacant buildings of the City of Montreal since at least 2016 is fair.

In 2018, the building and the land were respectively valued at $ 442,000 and $ 242,000 by the City of Montreal ($ 664,200), even though “the house has been in this condition for years,” assures us. the owner of Convenience Store Fu Quan, opposite, who preferred to remain anonymous.

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Listen to the interview of the spokesperson of the Popular Action Front in Urban Reorganization (FRAPRU), Véronique Laflamme, with Benoit Dutrizac on QUB Radio:

“No one has lived there for a long time. When I bought the convenience store 12 years ago, all the tenants left after two or three years and the house was closed, ”she says.

For the economist at the Canada Mortgage and Housing Corporation (CMHC), Francis Cortellino, it is above all the land that is now worth its weight in gold.

“The value of land has risen sharply in recent years,” he argues. We are talking about a 200 to 300% increase in land for a single-family home in the Ville-Marie borough [entre 2000 et 2019 environ]. So imagine for a rental property. “

According to the neighborhood, the three-unit building has been in this state for years.

Courtesy photo

According to the neighborhood, the three-unit building has been in this state for years.

“For me, this house would be just a bunch of problems. But how many entrepreneurs are willing to pay if they can sell it for 1 million in three weeks? Suggests Jean-Philippe Meloche, professor specializing in urban economics, local and regional economic development at the University of Montreal.

Thus, the signs of real estate overheating are still being felt in Montreal.

The vulnerability of the housing market has also gone from “moderate” in March to “high” in September, according to the most recent CMHC Housing Market Assessment.

In short, the market is out of balance: prices are accelerating, houses are overvalued in relation to the income of the population and demand is much greater than supply.

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When a house is sold by the public curator, “it can be because of an abandoned estate, an unfit owner or if the place belongs to a minor”, details lawyer Isabelle Grégoire.


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