Some condo, townhome assessments leap by double digits

Last month, B.C. Assessment warned owners of typical condos and townhomes that their latest assessed property values would increase in the range of 15 to 30 per cent. But for some, the value captured at mid-2016 is even higher, mirroring trends of increases between 30 to 50 per cent in the detached home market, with a few outliers posting surges of almost 60 per cent.

Single-family home prices in Metro Vancouver had already been rising in double-digit percentages when, last January, there were the first signs of upward momentum in the condo market. Before this, condo prices had been flat or declining for years.

B.C. Assessment is giving examples of what it considers typical properties with much higher increases, even though these July 2016 snapshots show a market that has since softened. These include a Lynn Valley townhouse built in 1979 that posted a 38 per cent gain. The Crown corporation cited a townhouse in the Citadel area of Port Coquitlam, built in 1994, with a 34 per cent rise. In Port Moody’s Newport, a unit in a highrise built in 2005 posted a 25 per cent rise and a downtown New Westminster townhome built in 1993 went up 36 per cent.

As an example of the multi-family units on Vancouver’s west side, B.C. Assessment cited a low-rise unit built in 2002 with a 25 per cent gain and, on the east side, a highrise unit built in 2003 with a 20 per cent gain. In Burnaby, it highlighted a Metrotown highrise unit built in 1999 with a 19 per cent gain.

Postmedia took its own gauge, dipping into buildings and complexes to find several that exceed the ones highlighted by B.C. Assessment. At 1033 Marinaside in Yaletown, a lower unit posted a gain of 34 per cent. At 2088 Madison in Burnaby, near Brentwood Town Centre, an upper unit saw a 35 per cent rise. Buildings in areas where new zoning has sparked pricey sales and redevelopment activity, such as around Burrard Street in the West End, saw more extreme increases. A higher unit at 1330 Burrard St. saw a 60 per cent gain, while a lower unit posted a 48 per cent increase.

In the past, market analysts said that compared to single-family homes, there was a greater supply of condos and townhomes that are more affordable for a larger number of buyers, which helped to keep a lid on prices.

Said Michael Ferreira, managing principal at Urban Analytics: “It’s typical for the apartment/condo market to trail the detached market in terms of the amount of value increase. (There is) much more demand relative to supply in the detached market. You just need to look at the number of apartment/ condo starts compared to detached starts … to illustrate that…

“It’s pretty crazy indeed. Amazing that people still suggest supply isn’t an issue in the market.”

In many of these areas, the fact there wasn’t any new development for several years allowed pent-up demand to be released when new product was put on the market. Quick sales drove up prices, he said.

“This isn’t the only factor,” Ferreira said, “but when you combine it with the arrival of new buyers in the market and a fear-of-missing-out mentality among buyers, you can see why prices have risen so considerably.”