Valuation of Residential Strata Properties
"Strata lot" means a lot on a strata plan. For the purposes of assessment and taxation, each strata lot together with its share of common property, facilities, and other assessable assets, is deemed to be a separate property.
Strata properties are assessed in the following manner:
- BC Assessment calculates the market value of each strata unit by comparing sales of similar units in the complex. If there are not enough sales to compare, then assessors analyze similar strata developments.
- When applying this approach, BC Assessment considers all factors that affect value, including the size of the unit, view, location, number of bedrooms, construction quality, floor level and number of parking stalls.
- The depreciated building value of each unit is determined, taking into account the differences between units such as floor area, finishing and features.
- The value of common properties (swimming pool, fitness centre, etc.) is determined and apportioned to each unit on the registered strata plan.
- Finally, the total building value of the unit is subtracted from the total market value of the unit. The difference is recorded as "land" on the assessment notice.
Example assessment of a strata property
| Total market value of unit | $220,000 |
| Less building value | ($120,000) |
| Land value (residual amount) | $100,000 |
The assessment notice for the above example property would show:
| Land | $100,000 |
| Improvements | $120,000 |
| Assessed value | $220,000 |
I'm on the 10th floor: How can I be assessed for land?
The assessed value of your property must equal market value. If your strata unit could have sold for $220,000 and the building portion is only worth $120,000, the remaining $100,000 is the underlying value of the land.
We purchased our unit for much less than what other units sold for, but now, the assessments are very similar. Why?
When a strata development is initially marketed, the developer estimates the market response to each unit and often sells some units at a higher price. For example, units with advantages (view, location in the building, interior finish, etc.) may have originally cost more than other units. While these estimates may have been accurate at the time, the resale market can reveal that the value of some factors were over- or under-estimated. As market conditions change, subsequent purchasers may not pay the higher price. Also, the assessment notice reflects what was happening in the market on July 1 of the preceding year.
My unit appears to be identical to my neighbour's, yet my value is higher. Why?
When determining your property's assessed value, BC Assessment considers the information found on the registered strata plan, including the unit's actual size. Although units may appear similar or identical, they may actually be different sizes and contain features that account for the difference in value. Your unit might have a better location in the building or view. There may also be differences in upgrades or finishing quality between the units.
More Information
For more information on the valuation of strata property, contact your local BC Assessment area office.
