Greater Victoria homeowners will generally see property assessment increases of between two and eight per cent thanks to the region’s robust real estate market.
The latest numbers indicate a “really good healthy trend in values upwards,” said Reuben Danakody, Vancouver Island assessor for B.C. Assessment. “All the areas that have historically trended above others are doing the same thing again.”
These include single-family houses in sought-after neighbourhoods such as Oak Bay, Cadboro Bay, North Saanich, and Central Saanich, he said.
Notices are going out to owners of 148,000 properties in the capital region, showing the estimated market value as of July 1, 2015, and its physical condition as of Oct. 31, 2015.
The volume of real estate transactions this year has exceeded the previous year by at least 30 per cent, Danakody noted.
He said that increase “demonstrates there is good confidence in the real estate market here, which is excellent.”
As sales climbed, values increased, Danakody said.
“It wouldn’t surprise me that part of it has got to do with the spill-over effects of what is occurring in the Lower Mainland, Vancouver particularly.”
Buyers in this region can find a “very nice home” in the $500,000 to $750,000 range, he said. But in the Vancouver area, $1.6 million or $1.7 million purchases a 1950s or 1960s style house, “which are prime candidates for tear-down over there.”
Greater Victoria’s market is buoyed by the region being a desirable place to live and by newcomers moving here. This includes people coming here to retire or to work for various levels of government or at post-secondary institutions, he said.
This year’s largest average increase is in North Saanich, which rose by an average of 7.04 per cent.
Percentage increases in residential property values are up above those seen last year. For example, Oak Bay had the highest average increase among local municipalities last year at 2.85 per cent. This year, Oak Bay’s average increase is 6.52 per cent.
Strata-titled properties, mainly condominiums, are seeing values increase anywhere from two per cent to about eight per cent, Danakody said. Oak Bay, North Saanich, and a section of View Royal on the north side of the highway are seeing some of the higher percentage increases.
After the 2008 recession, some condo projects shut down, sales rates slowed, and financing was difficult to obtain. “[But now] we are starting to see a lot of new construction,” he said.
It will continue, Danakody said, adding that most municipalities have strata projects in the works, especially in the West Shore.
The local accommodation sector has seen an active year, with at least six sales, most for less than $10 million. “We are seeing a lot of offshore investors,” he said.
“That gave us a real good comfort to move up values. We are probably going to see substantive increases of at least 20 to 25 per cent.”
Commercial-retail properties could see increases of between 10 and 12 per cent, as some shopping centres have completed major renovations, he said.
