Plex on the South Shore: more listings, but they still sell fast

This fall, buyers on the South Shore finally have room to breathe. Listings are climbing everywhere, and faster here than in the rest of the region. But one segment refuses to follow the trend: the plex. It still sells fast, and for an investor, that's a signal worth stopping on.

The South Shore suddenly has the most choice in the region

Let's start with the August picture. According to QPAREB, the metropolitan area had 20,128 properties for sale, up 18% year over year. The increase isn't spread evenly. After first building up on the Island of Montreal, inventory is now growing most in the outlying areas. The South Shore posted +28%, the largest jump among the major sectors. Sales, meanwhile, fell 13%. More signs on lawns, fewer deals closing.

For buyers, that's good news that's been missing for a long time. QPAREB puts it plainly: buyers have regained some of their negotiating power. Selling times are stretching, with single-family homes now taking 42 days and condos 62. You can once again take time to compare, order an inspection, and talk price instead of buying blind.

The plex, though, moves against the current

Here's the figure that stopped me. While everything else slows down, the plex is selling faster than it was a year ago. Its average selling time dropped 4 days, to 52. It's the only category where the market is speeding up instead of easing off. Plex listings still rose 15%, like everywhere else. So there's more choice, but buyers aren't leaving the good buildings sitting on the market.

Price follows the same quiet logic. The median plex price in the region sits around $856,000, up 2% year over year. Nothing explosive, nothing collapsing. When overall sales fall 13% and a segment holds its price while selling faster, demand is real. The investor looking for steady income hasn't left the table.

The financing math, numbers in hand

Rate stability is what makes this window readable. On September 2, the Bank of Canada held its policy rate at 2.25% for a seventh decision in a row, which leaves the prime rate at 4.45%. The next announcement is set for October 28. On the mortgage side, the five-year fixed rate is trading around 4% to 5% depending on the file, with the best insured rates dipping below 4.4%.

That leaves the gap between what a building yields and what money costs. According to CBRE, multi-family cap rates in Montreal sit around 4.25% to 4.5% for a quality building, and a bit higher for the small plex. The gap is thin, and I won't pretend otherwise. What's changed is that it's predictable. For a project run over five years, knowing where rates stand is often worth more than half a point squeezed out of the seller.

The financing structure does the rest. CMHC's MLI Select program is still available and, on an eligible rental building, can lower the down payment and improve the terms. I laid out how it works and the state of the South Shore rental market in two recent pieces.

What this means for you

• You own a plex on the South Shore: your building sits in the one segment selling faster than it was a year ago. That doesn't mean sell tomorrow. But before any decision, get its real value established, along with the gap between your current rents and the market. It's that gap that sets the price, far more than the neighbour's sign.
• You're looking to buy a first income property: the window is rare. You have 28% more choice than a year ago, a buyer who can finally negotiate, and rates that aren't moving. Take time to inspect and check the leases, but don't assume the good plexes will wait for you. At an average of 52 days, they go.
• You're weighing a condo against a plex: the numbers lean one way. The condo takes 62 days to sell and has hit its ceiling, while the plex speeds up and holds its price. For anyone after income rather than a place to live, the small rental building stays the most solid bet on the South Shore this fall.

I work both residential and commercial, and the plex sits right where the two meet. That's where I can be most useful to you on the South Shore. Want to know what your building is worth or assess a purchase? Request a free evaluation or write to me directly. I answer myself, every time.