Property values ​​have skyrocketed in 2021, including BC’s most expensive homes

“A large single-family home, regardless of the commuting route, is kind of what you want during the pandemic and it was not surprising to see increases in this segment,” Tom Davidoff, director, Center for Urban Economics and Real Estate at the University of the Sauder School of Business in British Columbia.

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In keeping with the theme of the rich getting richer, the lavish Point Gray Path set by Lululemon founder Chip Wilson. Home in Kitsilano rose nine percent on its 2022 property assessment to $ 73.2 million, according to BC Assessment.

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The increase, based on Postmedia’s review of BC Assessment’s most expensive properties, likely means Wilson’s home again remains the most valuable residential property for 2022, as owners across the province begin receiving their reviews this week.

“A large single-family home, regardless of the commuting route, is kind of what you want during the pandemic, and it was not surprising to see increases in that segment,” said Tom Davidoff, director of the Center. for Urban Economics and Real Estate. at the Sauder School of Business at the University of British Columbia.

BC Assessment sends over a million property assessments to homeowners each year in January, which Davidoff says will show that single-family home values ​​will rise faster than condominiums or townhouses, and suburban areas will grow faster than more central urban areas.

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BC Assessment will publish more detailed information on the 2022 values ​​starting Tuesday morning. Owners can search for their own reviews using the agency’s search tool on their website.

One caveat about this year’s valuations, however, is that they will be out of date when they arrive, Davidoff warned, as they are based on property values ​​as of July 1, 2021.

“They’re pretty well below the market, as the market is exploding even since the very strong appreciation we saw from the middle of the pandemic last summer,” Davidoff said.

The increase for the Wilson complex on the Kitsilano waterfront was $ 6.3 million more than its 2021 valuation.

In the 15 most valued properties on the 2021 Top 100 list compiled by BC Assessment for the Lower Mainland, a condominium located on the 31st floor of Harbor Green 3 at 277 Thurlow Street was the only one to lose value during its valuation, down one percent to $ 27.7 million, from just over $ 28 million in 2021.

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“Space around here is a luxury, so you’ll see upward pressure, I think, at all costs,” Davidoff said.

For the most part, homes in the highest segment of the market increased in value, from 5% to 21%.

A house located at 35220 Cassiar Ave. in Abbotsford was an outlier, valuing 34% to hit $ 42.3 million in its 2022 valuation, but that had more to do with the development potential of the 64 hectares of land to which it is attached.

4707 Belmont Ave.  in Vancouver was valued at $ 64.6 million.
4707 Belmont Ave. in Vancouver was valued at $ 64.6 million. Photo by Ric Ernst Ric Ernst /Vancouver sun.

Of the other luxury homes on the list, most were located on the West Side of Vancouver, such as 4707 Belmont Ave. in the University Endowment Lands, which rose 7% to $ 64.6 million, and the 4719 Belmont, which rose 12% to nearly $ 40. million.

The waterfront complex at 3330 Radcliffe Ave. in West Vancouver, listed by BC Assessment as nearly 12,000 square feet. single-family home, also saw a substantial increase in value, from 16% to $ 31.7 million in its 2022 appraisal.

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In theory, property values ​​have not increased “above what a reasonable person might call fundamental value,” Davidoff said, given the equity that existing owners earn on the properties, combined. at low interest rates on mortgages.

“But they have come to a terrible point for first-time buyers looking to enter the market,” he added.

Across Canada, property values ​​have jumped 34% since March 2020. In British Columbia, locations outside of Vancouver have seen the largest increases, such as Chilliwack where valuations have increased by 36 .5% year over year in November, compared to 16% in Vancouver.

“It’s’ Drive until you qualify (for a mortgage),” ”Davidoff said,“ and we see a lot of that with Squamish having a really good price appreciation, for example, or Bowen Island. “

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“I’m sure the Fraser Valley has probably outperformed the inner suburb as well,” he added. “I don’t know what people think about what’s going to happen with their commute to work when COVID is over, but I think it’s an open question. “

depenner@postmedia.com

twitter.com/derrickpenner

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