Property values in the Plateau-Mont-Royal borough rose 26.4 per cent compared to 2010, while apartment buildings with six or more units jumped just over 31 per cent.
MONTREAL — Steadily climbing real estate values in Montreal have translated into a growing crop of million-dollar homes.
About 9,700 single-family dwellings on the island are worth more than $1 million, while almost 400 are worth more than $3 million, according to Montreal’s new assessment roll, which represents a snapshot of property values for July 2012.
The roll, made public Wednesday, has assessments for residential, commercial and industrial properties jumping by almost 20 per cent compared to the 2010 roll.
The highest-value residence on the island is a mansion in Westmount pegged at $18.7-million, the head of Montreal’s evaluation department said. He could not immediately say what Montreal’s most humble home was worth.
“Maybe around $250,000,” Bernard Côté quipped to reporters.
The average value of a Montreal condo is $313,300 while an average single-family home on the island is pegged at $484,600, according to the roll.
There are now four sectors of central Montreal where the average value of single-family homes is above $1 million: the municipalities of Mount Royal, Westmount and Hampstead, along with the borough of Outremont.
Only Outremont and Westmount had that distinction on the 2010 roll.
Montreal’s new assessment roll is the bedrock upon which municipal property taxes will be decided for 2014, 2015 and 2016, as well as an indicator of the value of residential, commercial and industrial properties across the island.
But that does not mean property taxes will rise by 20 per cent.
The rule of thumb, Côté said, is that a property owner whose assessment is above the average increase in his or her municipality or borough can expect a tax hike, while those below the average may pay the same or even less in taxes.
A Montreal homeowner’s property tax bill is calculated by multiplying the property assessment by the borough’s tax rate, a rate set by Montreal’s elected officials.
The Plateau-Mont-Royal borough again saw the biggest jump in property assessments in the city.
In the new tax roll, property in that trendy hood rose 26.4 per cent. In 2010, the jump was a whopping 41 per cent.
And it is not only Plateau property owners who may feel the pinch of the new roll. Plateau apartment buildings with six or more units saw their assessment leap by just over 31 per cent compared to the 2010 roll.
Outremont saw property values rise by 25 per cent, while property owners in the emerging Sud-Ouest borough where Griffintown is taking shape saw their valuations rise 24.6 per cent.
Much like a rising tide lifts all boats, even modest properties in boroughs that see overall valuations jump can expect their value — and taxes — to rise.
The roll is not based on the assessments of every property in a borough but on average sale prices in the borough, reporters were told.
Real estate speculation may be at play in an area such as Griffintown, but the assessments for the Sud-Ouest borough are not based on that, Côté said.
“The values entered on the roll reflect the market itself, without speculation,” he said.
Island municipalities saw property value increases that ranged from 6.1 per cent (Montreal East) to 28.1 per cent for Dorval Island, home to 57 single-family dwellings. Mount Royal saw property values jump by just under 26 per cent.
The 19 Montreal boroughs saw property values increase between 12.9 per cent and 26.4 per cent.
Values in the residential sector increased by 21.2 per cent and by 13.7 per cent in the non-residential sector.
The total value of the Montreal Island properties is almost $297 billion and represents almost one-third of the property values in Quebec.
In 2011, about 7,000 property owners contested their assessment and about 60 per cent saw the assessment lowered, Côté said. In rare cases, the value was increased.
SOURCE: The Montreal Gazett