N.S. residential, commercial growth continues but slower than previous years

Property values across Nova Scotia have gone up again this year, but the growth has slowed compared to the last two years.

"We're seeing the market perhaps return to more moderate increases from where we've been," said Jeff Caddell, director of valuations with the Property Valuation Services Corporation.

The corporation sent out property assessment notices to most owners this week, reflecting an average increase of 11.2 per cent in residential values and a 2.8 per cent increase in commercial assessments.

That's an overall average increase of 9.8 per cent, which is well below the 17.8 per cent increase last year and 18.2 per cent increase the previous year.

In a briefing with reporters on Monday, Caddell said there's still strong demand for residential units, but the cost of commercial construction has gone down, putting the brakes on growth in that sector.

The strongest commercial growth has been in Halifax and East Hants, he said, while the value of accommodations properties across the province, such as hotels, has returned to pre-pandemic levels, based on their income potential.

"We saw recovery last year in that sector and when we look back now, we can say that that industry has recovered from the impacts of COVID and we're seeing fairly strong market growth in those areas."

Caddell said residential increases are being helped by apartment construction.

Wildfire effects

On Friday, the provincial government announced measures to protect homeowners affected by the 2023 wildfires from property tax increases by fixing their 2025 property assessments at 2023 levels.

Those who rebuild homes larger than what was lost will face regular increases on anything over 25 per cent beyond the 2023 home size.

Corporation spokesperson Rebecca Vostermans said the accounts of properties affected by the wildfires are still being worked on and assessment notices for them will be mailed out next week.

The province's capped assessment program was set up to ensure the values used for taxation do not exceed the rate of inflation, unless a property is new or has been sold.

The cap this year is set at 1.5 per cent.

Property taxes to be determined

The effects of the 2025 assessments on property taxes will only be known once municipalities set their individual annual tax rates later this year.

Halifax's overall assessment, including residential and commercial properties, went up 9.6 per cent, totalling nearly $106 billion.

Cape Breton Regional Municipality's overall assessment went up 11.2 per cent, reaching $10.8 billion.

More information about assessment changes and how they are determined is available on the corporation's website. 

Details are also available on assessment changes in each municipality.

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