Rental returns in Montreal outpace those in other Canadian cities
January 31, 2018
|Last Updated: Jan. 31, 2018|
|TORONTO -DOWNTOWN condos||PRICE/SQ.M. (US$)||YIELD (p.a.)||PRICE/SQ.FT. (US$)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|Bay. St. Corridor||9,343||32.62||4.19%||868||3.03|
|St. Lawrence Market||7,309||31.86||5.23%||679||2.96|
|Mount Pleasant West||7,309||30.46||5.00%||679||2.83|
|West Point Grey||9,914||n.a.||n.a.||921||n.a.|
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you'll really earn) are typically around 1.5% to 2% lower. |
Source: Condos.ca Definitions: Data FAQ See also: Update Schedule
Rental returns on apartments in Montreal tend to outpace those in Toronto. We've found in recent years that even on a largish 120 sq. m. apartment in Montreal, you are likely to earn a gross rental return over of 4.5%. If you own a small apartment of 60 sq. m. in Montreal and rent it out, you are likely to make a return of around 6%. In this low-return era, in a low-risk country such as Canada, that is a really acceptable yield. However unfortunately this year we don't have yields data for Montreal, so in saying this we are relying on an extrapolation of previous years' figures.
In Toronto, gross rental yields are lower, at between 3.5% to 5.3%, sometimes even lower. Taking account of the fact that we give gross figures - a guess might be that net yields would be 2% lower - then obviously the difference in returns between Montreal and Toronto is really significant.
We continue to find it hard to collect yields figures for Vancouver.