Property assessments for Vancouver property owners are being mailed out this week, and owners can expect a 5 to 15 per cent rise in their assessed values. But some areas increased much more than others. For example, White Rock and Abbotsford saw the greatest increases in condo property prices, and Vancouver and UBC saw the lowest gains.
UBC was the only area that saw no increase (0 per cent) in condo and townhome prices. This is most likely because it’s impossible to own the land at UBC, instead, you just pay for the rights to use the land for an extended period of time, called a leasehold.
The city of Vancouver also didn’t perform as well as other areas, with a modest increase of only +6 per cent. That being said, compared to the -20% that many received from investing in stocks, or the -60 per cent for those that invested in crypto, a +6 per cent is great in comparison.
What areas saw the greatest increase in condo prices?
At the top of the list for the high-performing areas were White Rock and Abbotsford condos, which both saw a staggering increase of +21 per cent.
To put that in perspective, if you bought a condo in White Rock in 2021 for $800,000, a 21 per cent increase of $800,000 is equal to a capital gain of $168,000. This means that the total value after the increase would be $968,000.
Other high-performing areas included Surrey and Maple Ridge.
Areas that offer more affordability did better on average than areas that were already expensive. It is also likely that there is more land to develop in places like Maple Ridge and Abbotsford, versus in Vancouver.
Of course, as prices rapidly increase at rates of over 20 per cent in the Fraser Valley, real estate will quickly become unaffordable, leading to a slowdown in the increase of property prices.
What causes property prices to go up?
There are many factors that can cause property prices to increase. Economic growth and stability, low unemployment, population growth, limited supply, low-interest rates, infrastructure improvements, and government policies can all contribute to higher property values.
For example, if a region is experiencing population growth, it can lead to increased demand for housing, which can result in higher property prices. On the other hand, low-interest rates can make it more affordable for people to borrow money to purchase a home, which can also contribute to price increases. Similarly, investments in infrastructure, such as new roads or public transportation, can make an area more attractive to potential buyers, which can lead to price increases.
Look up your neighbours' property values
If you want to see what the government thought your property was worth as of July 1, 2022, you can go to the E-Value BC website. But keep in mind it can be difficult to accurately determine the value of a home unless it is actually sold. This is especially true in places like Vancouver, where there is massive supply and demand. Property values can quickly move in either direction.
BC Assessment takes into account the value, classification, location, and size of the property. It significantly impacts the amount of property taxes that homeowners pay. But keep in mind that your property taxes do not go up directly with the increase in your assessed value. There is a complex valuation that each municipality uses, which depends on the city's budget, and how many properties are located in the city.
Vancouver property owners who are unhappy with their assessments have the right to appeal them. It is important for homeowners to remember that they have options if they feel their assessment is not accurate, and that they can seek re-evaluation if necessary. Some property owners even hire lawyers to file lawsuits over property taxation issues. If you want to appeal your BC Assessment decision, visit B.C. Assessment.
Alistair Vigier is the CEO of the legal technology company, ClearWay Law. You can go to the website to leave reviews for any lawyer in Canada, and connect with lawyers directly.
