House values rise as condos decline, assessments show
Calgary’s assessed house and condo values combined have risen two per cent, according to the city’s 2018 assessment report, as light increase after two consecutive years of dec lines blamed on the slumping economy.
On Thursday, the city released its 2018 property assessment report, which also showed the average value of non-residential properties fell five per cent from last year.
Amid economic recovery, the city assessed the typical stand-alone house in Calgary at $480,000, up from $460,000 in 2017. For condominiums, the median assessed value is $260,000, down from $270,000 last year, city assessors reported Thursday.
Harvey Fairfield, acting director of city assessment, said Calgary’s growing supply of condos contributed to that decrease, while most homes rose in value by more than two per cent.
“While overall residential values experienced an increase of two per cent for 2018, single-residential homes were generally higher, with condominiums experiencing a slight decrease in value for 2018,” said Fairfield.
The modest two per cent increase comes after the average value of a residential property in Calgary fell four per cent in 2017 and one per cent in 2016, following a 10.5 per cent increase in 2015 amid rapid population growth and booming residential home sales.
The 2018 assessments, which are already in the mail, are used to calculate municipal property tax bills each year and are based on market values of the property from July 1.
Under Calgary’s revenue-neutral system, whether a stand-alone home or condo’s taxes go up or down depends on how the change in assessed value compares with the citywide figures — a 2018 property assessment pegged at more than a two per cent increase, for example, will see a homeowner’s taxes go up.
Fairfield said this year’s average two per cent jump for homes and condos combined means the vast majority of residential property owners’ tax bills will stay within plus or minus 10 per cent of last year’s tax bills.
“Approximately 56 per cent of all residential properties will see a tax decrease in 2018,” he said, noting single-family properties will generally see a higher tax bill, while condominiums will experience a decrease.
While no communities suffered sharp drops or spikes on average, residential communities with the largest 2018 tax increase include Scarboro/Sunalta West, Rosedale, Roxboro, Mount Pleasant, West Hillhurst and Rosscarrock.
Predictably, communities with a high concentration of residential condominiums, including downtown, Beltline and Eau Claire, are among those most likely to see lower than-than-average tax hikes this spring.
When it comes to non-residential properties, such as office buildings and shopping malls, Fairfield said the 2018 assessments and subsequent tax bills aren’t quite as grim as what business owners faced in 2017.
Last year, a staggering $4-billion drop in the 2017 assessed value of downtown offices amid high vacancy rates resulted in a redistribution of non-residential property taxes. That had many businesses outside the core bracing for significant double-digit tax increases until council stepped in to help with a $45-million relief program that capped non-residential property taxes at five per cent.
This year, the non-residential taxable assessment base decreased $2.7 billion — to $67.3 billion from $70 billion in 2017 — and the typical non-residential property assessment change is a five per cent decrease from 2017.
That means non-residential property owners with year-overyear assessed values higher than negative five per cent will face a tax hike in 2018 with city assessors estimating 61 per cent of non-residential bills will stay within plus or minus 10 per cent of last year’s taxes.
“The amount of higher shifts that the businesses are going to be experiencing is much, much less in 2018 than it was in 2017,” Fairfield said.
Fairfield said it’s likely retail and industrial properties in Calgary will see an increase in property taxes this year, while office towers still struggling to recover from the downturn will see lower taxes based on 2018 assessments.
“If you’re an office property, chances are your change in assessment value was a lot more than minus five per cent for 2018. You’ll probably experience a decrease in your property taxes for 2018,” he said.
Amid continued high office vacancy rates downtown, council voted in November to extend the $45-million relief program for business owners for another year following a motion from Mayor Naheed Nenshi, who campaigned on continuing to cap non-residential property taxes.
However, Fairfield said Thursday that city administration is currently coming up with scenarios, which municipal politicians will vote on in February, detailing how best to distribute relief for nonresidential property owners and it’s not necessarily a guarantee the funds will be used to cap taxes at five per cent this year.
“There are different scenarios from extending the 2017 program, to creating a new program for 2018. We’re not sure what council will decide,” he said.
Fairfield encouraged all property owners to review their assessments online and said home and business owners have until March 12 to appeal their property assessment.
Council has approved a 3.8 per cent property tax hike for 2018, though the full picture of what citizens’ tax bills will look like won’t be known for a few more months when the province sets its portion of the city tax bill in its spring budget.