City: market value of properties increased only 1.4 percent

By Catherine Contiguglia | January 15, 2008 05:11PM

The estimated value of New York City’s real estate increased by only 1.4 percent over the past fiscal year, according to the Department of Finance’s tentative property assessment roll, released today.

Market values dropped 0.70 percent in Queens, 0.58 percent Brooklyn and 3.29 percent on in Staten Island. Market values increased by 5.1 percent in Manhattan and 6.0 percent in Bronx.

Citywide, the value of one-, two- and three-family homes decreased by 2.76 percent. 

Last year, the city reported that the market’s estimated value jumped by 19 percent.

Despite the slowing growth rate, city officials were upbeat.

“New York City’s real estate market is still steady and remains strong after years of rapid growth,” Finance Commissioner Martha E. Stark said in a statement.

Overall, property values increased to $807.4 billion, up from $796 billion.

The annual assessment roll compiles market and assessed values for all residential and commercial properties. Taxes for the next fiscal year are mostly determined by the tentative roll. Market values are based on sales figures for homes and potential income for other properties.

Jonathan Miller, Radar Logic’s executive vice president and
director of research, downplayed the slowing pace of assessment rate growth.

“The assessment rates have leveled off after a fairly steep rise over the
last five, seven years,” he said.  “It’s
not assessment values plunging — the rate shows assessment values have leveled.”

Commercial properties showed growth, as did condominiums, cooperative apartments and rental properties, the report said.

In a new initiative, the Department of City said it will send notices of value to condo owners in buildings with at least 10 units. more [NYT] and more [Sun]