Calgary’s housing market remains strong, according to the latest report released by the city’s property assessment department.
While the overall value of residential properties rose by 10 per cent, non-residential properties increased just three per cent.
The value of single residential homes was up by nine per cent compared with the previous year while the multi-residential market had a four per cent increase. The value of residential condominiums was up by 17 per cent.
To put it in dollar figures, the 2024 median single residential assessment increased to $610,000 compared with $555,000 last year.
This year’s median residential condominium assessment is $295,000 compared to $255,000 last year.
The annual assessment takes two factors into account — a market valuation from July 1, 2023, and the physical condition of a property on Dec. 31, 2023.
“While the typical residential change was 10 per cent this year, it was not uniform across all types of residential property,” said city assessor Eddie Lee.
“This past year, we have seen greater demand for lower-priced options such as townhouses and apartment condos over single residential homes.… We can see that Calgary’s housing market remains strong with vigorous sales showing strength in the marketplace.”
As far as non-residential properties are concerned, industry property values easily overtook other property types, the city said in a release.
“Industrial property values increased by nine per cent, which demonstrates the reliability and vitality of this property type. Industrial properties continue to outpace the other non-residential properties due to the sustained demand as Calgary remains a major distribution hub.”
Lee said Calgary’s industrial market enjoys several advantages, including economic, transportation and logistical benefits coupled with positive trends that have been observed in the e-commerce space.
Meanwhile, the value of retail spaces was up by two per cent while office property values had a zero per cent market value change.
“While reduced capital spending by businesses is constraining overall growth, our office buildings are more affordable than in the past. We are continuing to see flight to quality as tenants are moving into these buildings,” Lee said, adding that more tech companies are setting up offices in downtown Calgary.
“Additionally, the city continues to successfully roll out its downtown Calgary development and incentive program aimed at converting vacant office space to residential and alternative spaces. To date, over 1.1 million square feet of office building space is planned for residential conversion over the next several years.”
A City of Calgary official provided the assessed value of non-residential properties in the downtown core in an emailed statement.
While the numbers totalled $27,880,500,000 in 2014, a downward trend was observed in 2015 and subsequent years. The assessed value of non-residential properties in downtown was $9,967,600,000 in 2023.
Property tax implications
The city’s annual assessment may or may not lead to a change in property taxes for a specific property, according to Lee.
“Your taxes may change due to the annual assessment process if your property’s assessed value increases or decreases greater than the typical change for your assessment class,” he said.
“If your property’s value change is lower than the typical change of 10 per cent for residential, this will result in less tax. If your property’s value change is similar to the typical change, this will result in similar tax. And if your property’s value change is higher than the typical change, this will result in more tax.”
He said approximately 90 per cent of residential property owners will pay within 10 per cent of last year’s property tax bill.
Similarly, multi-residential owners will likely pay less tax due to a lower-than-average change in their assessment (four per cent, to be precise.)
However, condo owners will probably end up paying more tax, thanks to a 17 per cent change in their assessment, which is higher than typical numbers.
Mayor encourages Calgarians to review notices
“Today, Calgarians are going to start receiving their property assessments in the mail. And what we’ve heard from economists, especially Ann-Marie Lurie from the Calgary Real Estate Board, is that people can expect the assessed value of their home to have gone up,” said Calgary Mayor Jyoti Gondek.
She added that the demand for homes has gone up, which is good news for property owners in the city.
Gondek noted that when a property’s value increases, its taxes tend to increase as well, which makes it necessary to review assessment notices carefully.
“Go on the website to see how the assessment was done, to see what the comparators were,” she said.
“If you have any questions or if you wish to do an appeal, those options are open to you. So please engage with the City of Calgary to learn more.”
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