Alberta land sales trend downward to start 2012
Downward trends started in February 2012
Land sales for drilling rights in Alberta netted the province an average of $206.20 per hectare on April 4, 2012. It’s the lowest result since an average of $196.96 per hectare was earned from the auction on October 28, 2009 – right in the middle of the economic meltdown.
It’s a sharp drop off from June 1, 2011 when Alberta recorded its best showing in the last five years. The province earned a total of $841.6 million, bringing in an average of $3,110.85 per hectare. The strong results were spurred by 101 parcels of land sold in the northern region, which earned $817.8 million for an average of $4,401.96 per hectare.
Of the province’s three regions – plains, northern, foothills – the strongest results from the recent April 4 auction were in the plains. There were 144 parcels sold in the region, which earned $12 million for an average of $311.74 per hectare. Is this a case of the oil patch figuring all the good land is already gone? We’re not sure. But if the trend continues, it won’t make the Alberta provincial government’s task of balancing the budget any easier.