Ottawa, Will LRT Increase Property Value?

Does Ottawa have a subway? Kinda...

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When a home or condo is sold on the Ottawa MLS® the seller will be deemed to have recently "market value" for his property if it has spent a reasonable time on the market. A buyer will pay what he or she feels is the true market value of the home or condo.

Now, all properties in Ottawa are assessed by MPAC which is the Municipal Property Assesment Corporation. MPAC uses data from previous sales, square footage, etc to calculate what they feel is the "property assessment value" which could be different than the market value or the price someone could be willing to pay for the home.

It's safe to say that depending on the Ottawa neighbourhood you live in, the type of property you own, the ongoing maintenance that was done on the property and several other factors affect the market value of a home or condo. Homes that have been neglected could, in turn, have an assessed value that is higher than it's market value. This means the homeowners are paying taxes on a higher amount than what their home is worth. To learn more about how property assessments are calculated you can visit the MPAC website.  Those looking to have their assessment value reviewed can also do so on the MPAC website.

Those who own land, homes or condos near current Ottawa LRT stations or near future Ottawa LRT stations could, in turn, see their property assessment value increase. In turn, these people will pay a higher amount of taxes simply because of the new LRT stations opening up near them.

Since the opening of the Ottawa LRT stations has currently been delayed until 2019 there are no real data to show these increases and how nearby properties have been affected. What we can already see is neighbourhoods near currently planned LRT stations that are opening up in the Spring of 2019 are already seeing the market value of homes and condos sold increase quite a bit.

Neighbourhoods like Eastway Gardens / Industrial Park which is in close proximity to the St-Laurent LRT Station as well as the Tremblay LRT Station that connects passengers to the Via Rail line allowing commuters to travel to others cities including Montreal and Toronto have also seen an increase in prices.

The Eastway Gardens neighbourhood of Ottawa is located just east of Ottawa's downtown core and a stone throw from Ottawa's Train Yard shopping district.

This is a great spot for those wanting to live inside the greenbelt and commuting downtown for work or school. Many investors have been buying bungalows in the Eastway Gardens area and converting the properties to duplexes adding a full basement unit to these large properties.

In the last 12 months, there have been 12 sales in Eastway Gardens and the average days on the market was just 23 days while the average sold price was $397,067. In the previous 12 months (2016-2017) there were 11 sales and the average sold price was $355,127. This is an 11.8% increase for the neighbourhood in just 12 months.

Yes, those owning properties near current or future Ottawa LRT stations will likely see their property assessment value go up in the coming years but their market value should also see an increase.

If you are someone you know is looking to buy or sell a property in Ottawa or near a LRT station please call Roch St-Georges, real estat agent at 613-889-7732 to discuss your real estate.