Nova Scotia

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

Property values in Nova Scotia have continued to rise this year, although at a slower pace compared to the previous two years. According to Jeff Caddell, the director of valuations at the Property Valuation Services Corporation, the market is showing signs of returning to more moderate increases.

The corporation recently sent out property assessment notices to most owners, revealing an average increase of 11.2 per cent in residential values and a 2.8 per cent increase in commercial assessments. This translates to an overall average increase of 9.8 per cent, which is significantly lower than the 17.8 per cent increase seen last year and the 18.2 per cent increase the year before.

During a briefing with reporters, Caddell noted that while there is still strong demand for residential units, the cost of commercial construction has decreased, leading to slower growth in that sector. The most significant commercial growth has been observed in Halifax and East Hants, with the value of accommodations properties, such as hotels, returning to pre-pandemic levels based on their income potential.

Caddell also mentioned that residential increases are being driven by apartment construction, contributing to the overall growth in property values.

In response to the 2023 wildfires, the provincial government announced measures to protect homeowners from property tax increases by fixing their 2025 property assessments at 2023 levels. Those who choose to rebuild homes larger than what was lost will face regular increases on anything exceeding 25 per cent beyond the 2023 home size.

Rebecca Vostermans, a spokesperson for the corporation, stated that accounts of properties affected by the wildfires are still being processed, and assessment notices for them will be sent out next week. The province’s capped assessment program aims to ensure that the values used for taxation do not exceed the rate of inflation, with a cap of 1.5 per cent set for this year.

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The impact of the 2025 assessments on property taxes will only be determined once municipalities establish their individual annual tax rates later in the year. Halifax’s overall assessment, including residential and commercial properties, increased by 9.6 per cent, totaling nearly $106 billion. Similarly, Cape Breton Regional Municipality’s overall assessment rose by 11.2 per cent, reaching $10.8 billion.

For more information on assessment changes and how they are calculated, residents can visit the corporation’s website. Additionally, detailed information on assessment changes in each municipality is available for reference.

Overall, while property values in Nova Scotia have continued to rise, the growth has slowed this year compared to previous years. The measures taken by the government to protect homeowners affected by wildfires and the ongoing assessment processes highlight the complexities of the real estate market in the province.

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