Calgary's explosive economy has multiplied the number of city homes valued at more than $1 million by 10 since 2005 -- from 815 to 8,146.
That's according to the city's market value assessment data, released yesterday, that also showed nine neighbourhoods' median assessments exceeded $1 million with the southwest Eagle Ridge area the priciest, coming in at $1,865,000 based on July 1, 2007 figures.
And the city now counts two properties worth more than $1 billion -- downtown office complexes Bankers Hall and the Petro Canada Centre.
City assessor Stuart Dalgleish called it a good news indicator.
"It says our economy in Calgary has been really, really strong and healthy and there's continuing confidence in our economy," said Dalgleish.
Only about 4% of the change in property worth is due to the construction of pricier homes, the rest is from gains to the value of existing property, say city officials.
Eagle Ridge is also one of only two neighbourhoods -- the other being inner city Roxboro -- where homeowners can expect to swallow a tax increase of 20% or greater this year.
A rock-bottom downtown vacancy rate and huge demand for office space has fuelled the $1 billion price tags, said Amy Enfield, city assessment spokeswoman.
"It's possible Calgary has the most expensive office space in the country," she said.
While Dalgleish said the number of challenges to residential assessments hasn't increased in recent years, Ald. Ric McIver said there's a downside to the process and to some of the rise in values.
"Some people are cash-poor and property-rich and that's the problem with seniors," said McIver.
He noted the city is still determining if any residents on fixed incomes have been forced from their homes by steep tax hikes.
McIver also said the system punishes people for upgrading their homes by taxing them more "and rewards you for letting your property run down."
But Dalgleish said the system, now into its 10th year, has proven an equitable, revenue-neutral model that's being eyed by an increasing number of other jurisdictions.
"We have a good system and we have stability ... changes are more incremental than if we did the assessment less frequently," he said.Source: http://calsun.canoe.ca/News/Alberta/2008/01/05/4753951-sun.html
