New Montreal property assessment roll

No significant rise in building values in the last three years.

The value of buildings of 2 to 5 units on the Island of Montreal grew 6.1% between July 2012 and July 2015, as revealed by the new property assessment unveiled last week by the City of Montreal.  For buildings of 6 or more units, the increase was stronger: 13.2%. However, the growth is more contained compared to past property assessments where an increase of over 20% in building value was recorded.

CORPIQ therefore predicts that the 2017 tax bills will vary, based more on the annual budget that the City will unveil this coming December, rather than on the property assessment.

A less abrupt gap in the distribution of the financial burden can also be forecast, due to the relative similarity of the rate of value progression in different districts. Not to mention that the Coderre administration spreads the variation in value on three years, as was done previously. For example, if the value of a building has risen by 6% in three years, the amount on which the tax will be applied will be of 102% the first year, 104% the second year and 106% the last year of the assessment.

 It remains to be seen how the city and its boroughs will decrease their annual property tax rates to compensate for this increase in value. CORPIQ will soon publish an article explaining how property owners can challenge an assessment judged to be too high.

The number of plexes at a low in Montreal

Moreover, this latest property assessment reports a decrease in the number of rental buildings in Montreal.  In total, Montreal has lost 1420 plex type buildings since 2009, which comes to -1%; these have been probably converted or even rebuilt into condos. This decrease shows that buyers are losing interest in rental properties, especially when considering the difficulties when it comes to renovating and the challenges of making the rental property lucrative. In contrast, condominiums have increased by 35%.

Rate changes by building category – Agglomeration of Montreal

Property Assessment	Period covered	2 to 5 units	6 units or more
2017-2019	July 1, 2012 until July 1, 2015	6.1 %	13.2 %
2014-2016	July 1, 2009 until July 1, 2012	20.8 %	24.3 %
2010-2013 (4 years)	July 1, 2005 until July 1, 2009	26.7 %	26.6%
2007-2009	July 1, 2002 until July 1, 2005	Duplex: 56.8 % Triplex: 55.0 % 4 to 5 units: 59.5 %	6 to 11 units: 56.4 % Building superintendent: 40.9 %