New York City expects to record a 3.75 percent rise in real estate market values for the fiscal year starting in July, the finance commissioner said on Friday, as he issued tentative assessments for property taxes.
The city's total real estate market value likely will rise to $823.5 billion. That follows a decline by $2 billion to $795.7 billion for the current fiscal year, according to Owen Stone, a spokesman for Finance Commissioner David Frankel.
The city's more than 1 million properties are divided into four classes.
Market values can differ, however, from the city's assessed values used for the property tax, which is its biggest levy.
By June, the assessments will be finalized so the city can issue property tax bills for the new fiscal year.
Owners of one- to three-family homes likely will see the market value of their homes rise for the first time since fiscal 2008.
The market values, based on sales prices, are seen up by 0.86 percent for the coming fiscal year, after falling 2.82 percent in the current year.
Much of the gains were concentrated in high-end homes, especially in Manhattan, where market values popped 11 percent.
The increase in assessed values, was even bigger at 2.65 percent.
For cooperative and condominium apartments, or Class 2 properties, overall market values climbed 4 percent, though the most valuable homes chalked up a roughly 13 percent increase.
The Finance Department cannot by law use sales prices for apartments, and the assessed values climbed 8 percent.
The market value for utility properties, called Class 3, eased 0.14 percent. For other commercial properties, from offices to factories that make up Class 4, market value jumped 9.95 percent.
The increase in market values in Class 2 and 4 is driven by rising net operating incomes reported by landlords, as well as low mortgage and bond interest rates, which are used to determine income capitalization rates, Frankel said.
(Reporting by Joan Gralla; Editing by Leslie Adler)