The City of Calgary has mailed out its 2018 property and business assessments, reporting an increase in value on the residential side, but a decrease on the non-residential one.
The city is reporting a two per cent increase in value for residential, thanks to median single homes up to an average of $480,000 from $460,000 in 2017.
But city assessor Harvey Fairfield said there’s a dip on the condo side, down to $260,000 from $270,000, according to data up to July 1st, 2017.
“There is certainly a lot of supply coming on stream and that would certainly be contributing to that,” he said, adding it’s difficult to say if the trend will continue.
He said the answer will come on July 1 of this year when they review the data again, but expected communities with high condo numbers such as the downtown core and west end, as well as the Beltline, are expected to decrease.
The communities which will see the biggest jumps in value are expected to be Scarboro/Sunalta West, Rosedale, Roxboro, Mount Pleasant, West Hillhurst and Rosscarrock, with projected increases of seven to eight per cent.
As for the business side, Fairfield said while there was a dip of five per cent overall, a big change is the number of properties that will shift plus or minus 10 per cent.
In 2017, about 10,000 businesses shifted greater than 10 per cent in market value, but this year it’s down to between 3,000 and 4,000.
“Due in part that we have lower rents for those offices and now sort of spread to suburban areas,” he said.
Asked why downtown values didn’t fall more despite Calgary’s high vacancy rate, Fairfield said there’s a number of reasons.
“We had Brookfield Place and Manulife come on board and those are certainly higher assessments,” he said. “In addition to that, we’ve probably seen some of the tenants move from those class-B, class-A buildings into the newer double-AA buildings, and so we are seeing a little bit of uptake in terms of vacancy.”
In 2016 total office value was $31.1 billion, dropping to $26.7 billion in 2017 and this year it’s $23.9 billion.
Calgarians will have until March 12th to appeal their assessment.
In 2017, there were 4,217 total complaints, a slight decrease from the 4,587 the year before.
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