St. Albert’s industrial land costs are not as expensive as has been inferred in the past, coming in at levels the city says are on par with those of its competitors.
In a news release Tuesday, prices in St. Albert were described as “competitive.” The survey data, which looked at land sales between January 2011 and Oct. 2012, showed St. Albert’s median land sale price of $475,000 per acre was only $50,000 more expensive than the median land sale price of all 13 regions surveyed. In that time, St. Albert recorded only seven land sales, compared to 43 in Edmonton (southeast) and 32 in Leduc.
The median land price means half of land sales cost less than the median number and half cost more.
The sample included five different quadrants in Edmonton plus surrounding communities like Leduc, Nisku, Sherwood Park, Spruce Grove, Acheson, Fort Saskatchewan and Stony Plain.
When comparing the median land sale price across all 13 regions, St. Albert’s land was the fourth most expensive behind Edmonton (south), Edmonton (northwest) and Edmonton (southeast). The highest price-per-acre was in Edmonton (south) at $853,000.
The cheapest land was found in Stony Plain ($273,000), Edmonton-Winterburn ($289,000) and Fort Saskatchewan ($296,000)
Guy Boston, executive director of economic development, said St. Albert commissioned the study as a result of accusations the city had the most expensive industrial land in the region. The city received land sale data from The Network, a sales information service. The city conducted the analysis.
“We’re not the most expensive, so that needed to be dispelled immediately,” Boston said. “We’re competitive in the area we are in. We are better. We look to be a bargain.”
There are several factors influencing land price, such as the oft-cited mantra of “location, location, location,” as well as access to services and even the view.
“I think specifically the main thing buyers in that market are keying on is location, access to arterial roadway networks and quality of servicing,” said Greg Dahlen, St. Albert’s director of assessment and taxation services, who conducted the study.
“If someone says, ‘I want to be in northwest Edmonton, I heard St. Albert was more expensive,’ we say ‘you know what, we’re not more expensive so come here,’ ” said Boston.
But the price of land alone does not influence someone’s decision to buy, Boston said, citing the completion of the northwest leg of Anthony Henday Drive as a key factor in St. Albert’s appeal.
“Getting down to South Campbell and Riel, you also see increases (in land price) and I think you would see an increase in price when it became clear the Henday was going to be a boon to location,” Boston said.
It could hold St. Albert in good stead in years to come, particularly with the news that North West Upgrading will soon start building its new upgrader in Sturgeon County. With between 3,000 and 5,000 people coming to the area to work on the project, Boston believes the city stands to benefit.
“There’s no work camps so people will be scattered through the area. I think we’re only about a half-hour away on Hwy. 37, so we’re pretty well positioned to benefit from it.”
