2020 Assessment of Apartment Properties
A recent review of several apartment properties in Kitsilano showed BC ASSESSMENT has valued them as land rather than income investments. This is not correct.
Based upon an income approach, the value is less than the land value.
The City of Vancouver requires replacement of existing units when a site is developed.
The only sales in the area are for sites not requiring replacement of any units.
Our contention is that no developer would buy the property to construct a new building as it does not make economic sense.
GBA is 6,000sf site at 1.45 FSR = 8,700sf
10 existing units at 600sf = 6,000sf
Remaining extra density = 2,700sf
It does not seem logical that a developer would buy an existing building simply to knock it down and rebuild with only 2,700sf of new space.
Therefore, its existing use is the highest and best use.
We would like to put together a group to challenge BCA’s use of land value, rather than income value. If you are aware of any properties that fall into this category, please contact Peter Austin at 604-733-3282.