The convenience of living in Centretown has led to the second-highest increase in property values in the city, according to a new study.
The most recent Municipal Property Assessment Corporation showed Centretown properties increased in value by an average of 8.4 per cent, compared with an average increase of 6.3 per cent for the city as a whole.
The new numbers will mean higher taxes in what is one of Ottawa’s most desirable districts.
People want to live downtown, says Ansel Clarke of the Ottawa Real Estate Board, so it’s no surprise the value of properties in Centretown has increased more than most areas in Ottawa.
“Property values have risen consistently across the city, Centretown being a more expensive area to begin with,” Clarke says. “(People) want to walk to the (National) Arts Centre, shopping, the museums, the galleries… It’s a lifestyle choice.”
Clarke adds that the city's plans for intensification also plays a role in MPAC’s recent assessment, encouraging more people to live downtown and driving property values up.
“The government would rather see infill projects and construction in the Centretown area where services are already available,” he says.
“It’s certainly a lot more expensive to build, if you have to bring all the services to outlying areas.
In Centretown, Clarke says, “the facilities, the amenities are already there.”
Albert Galpin has lived in Centretown for more than 30 years and raised his family here. He agrees with Clarke and says people want to live in this neighbourhood because it’s convenient.
“I can walk home from my office in about half an hour. I’ve always walked,” Galpin says.
“And it’s so important that kids be able to live in their neighbourhood and be able to walk to school.”
Galpin says he’s seen a huge increase in his home’s value over the past few years.
Looking back to 2001, his monthly property taxes were around $300. Today, they’ve more than doubled to about $700 a month.
While Galpin and his wife were able to purchase a house in Centretown years ago, he says anyone looking to buy a first home in this area faces a huge burden because the prices continue to go up.
“I don’t know how people would be able to get into Centretown right now, if they were starting,” he says. “It would be really tough.”
And these prices don’t only affect people who want to move downtown. Clarke says those living on fixed income – pensioners, for example – will feel an impact as property taxes rise.
Further, Ottawa is the only city in Ontario with a tax deferral program for seniors or people with disabilities to assist in their annual property tax payments. According to Ken Hughes, the City of Ottawa’s deputy treasurer, there are about 100 residents using the program right now.
Clarke also points out that anyone who’s lived in Centretown for a number of years now has a nice asset they can cash in, if living downtown becomes too costly for homeowners..“It’s a two-edged sword.”
“It may become more expensive to stay in your own home, but at the same time you do have a nice nest egg.”
But then, of course, they’d no longer be living in the coveted Centretown area.