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2017 BC Assessment preview: Commercial property values increase up to 30 per cent

In Greater Vancouver, commercial property values will see an increase of between 10 to 30 per cent. The 2017 figures are to be released Jan. 3.
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On Jan. 3, the 2017 BC Assessment property values will be released. Those figures will show an up to 30 per cent increase in commercial and industrial property values, according to a series of previews released today. 

"The preliminary market analysis for 2017 property assessments indicates significant increases over last year's assessment values," says Jason Grant, assessor for BC Assessment. The total value of real estate in the 2016 B.C. Assessment was $1.34 trillion, up 11.1 per cent from 2015.  
 
Commercial real estate in the Greater Vancouver region will see an increase of 10 to 30 per cent over 2016’s commercial property values, the release states. BC Assessment's evaluation of Greater Vancouver includes Vancouver, the North Shore, Squamish, Burnaby, the Tri-Cities, Richmond and Surrey.
 
Single-family homes in the region post an even bigger increase of 30 to 50 per cent. Multi-family strata complexes will see an average increase of between 15 and 30 per cent. 
 
The commercial increase is less steep as compared to the rise in residential property values as they are generally less affected by fluctuations in the market. 
 
“Commercial properties are also subject to being leased with specific terms in place which can reduce the impacts of a strongly raising or lowering market as that income stream is stabilized over the term of the lease in place,” said Christopher Whyte, deputy assessor for the Thompson Okanagan region.  
 
In the Greater Victoria region, commercial property values have gone up five to 15 per cent over the last year. Multi-family residences in Victoria, Saanich, Sidney and Oak Bay have gone up in value five to 25 per cent since last year.  
 
Central Okanagan will see the smallest commercial increase of between zero and 15 per cent. Multi-family strata increases will be in the five per cent to 30 per cent range. 
 
Commercial property investors may see a rise in property taxes due to higher assessment values – though not necessarily. 
 
“It is important to understand that large increases in property assessments do not automatically translate into a corresponding increase in property taxes.  It all depends how your actual property assessment changes compared to the average change in your community,” Whyte added. 
 
The 2017 values were collected on B.C. Assessment’s annual valuation date, July 1, prior to August's foreign buyer tax implementation, and will be used to determine next year’s property taxes. Property owners across the province will receive written notice in December if their assessment values are expected to be above the normal increase range. 
 
Check out BC Assessment’s website on Jan. 3, 2017 to view the year’s new property assessment values.