7,037 eligible people participated in the lottery and won an apartment at a discount. Mazel Tov. 90,000 have not won yet, but they should compete in the next draws. They give you a gift – you won’t take it. Not a bad chance that in a year or two from now they will win – the Treasury is talking about 4-5 big plans a year and 30-40 thousand apartments assuming they will be marketed a year. Take two years and you will arrive at a conservative estimate of 60 thousand. The problem is that the number of eligible people is obviously increasing – the 90,000 eligible people will easily increase to 150,000. And yet – Zsa is already a good chance to win. If the apartments will be allocated at a discount projects in the aforementioned scopes. If this also fluctuates-pauses-reduces, then these eligible people will return to the apartment market – some of them will make offers to buy an apartment and heat up the market.
In other words, the government should leave these eligible people on the fence – let them understand that they will receive-win an apartment with considerable probability. Don’t let them squint into the market itself, it will heat up the market and it will raise prices. With all the problems with the discount apartment, especially the lottery that states that luck plays a central role in the lives of young people in Israel, it at least assigns solutions to a large part of the apartment applicants.
But the demand is still great. This demand, some of which is subdued because they now see the drop in prices for new and second-hand apartments that exceeds 5%, will return to the market. This demand also increases every year – weddings, divorces and more. Against the demand there is a regulation of the supply. Sophisticated regulation. There are contractors who are responsible for the supply. They decide when and at what pace to build. So there is talk of the fact that at the end of 2022 there were 160,000 apartments under construction, which is an impressive figure, but it could easily drop. The contractors reduced activity – they and boys more slowly. Why spend a lot of money and financing if at the end of the road there is a drop in prices. They dry up the market. They build less and build at a slower pace. It seeps into the data, if this continues we will see a dramatic drop in apartment inventory and supply. When demand meets falling supply, that’s a problem – that’s rising prices. so what are we doing?
The government should do – should take care of increasing the supply of apartments, encourage contractors to build also through benefits, etc., release much more land. There is a lot of talk about it, but nothing will really be done, and even given that the talk will turn into action, the focus is on reducing the purchase tax for contractors who will build and build quickly, but it is not a big drama. Reducing purchase tax in the periphery will help speed up the field of building evacuation in the periphery, but you know that this is not what will solve the problem. The problem is apartments mainly in the central area.
If there is not enough supply of apartments, the trend we are currently seeing of falling prices will stop at some point. If they don’t break the price regulation by contractors, what will be will be. Everything depends on the government and especially on its leader, Benjamin Netanyahu. The big question we have been repeating in recent months is whether our government really has an interest in lowering apartment prices. It seems that governments have always had no such interest. True, their public wants their children to be able to buy an apartment, but their public also owns its own apartment. The public sees the value of the apartment increasing and this gives them a sense of financial security, a sense of wealth. 63% of the public owns an apartment, they have earned a lot of money in recent years. If they lose further due to the decrease in the value of the apartments – they will not be satisfied.
So although apparently the goal is to lower apartment prices, it’s not certain that on the inside – that’s really what they want and are doing. It’s talk. If a government wants to lower apartment prices, it can. She doesn’t really want to. She doesn’t really want to because if you look at the members of the government and the members of the Knesset, you will see many people who have 2 or more apartments and if so – then why even cause a decrease in the value of the apartments? And why not expand the problematic exemption on rent taxation?
The coming months are critical. The statements and actions of the Treasury and the Ministry of Construction and Housing are critical to understanding where the market is going. A serious plan to increase the future supply is a must, and if it is not there, we are in a temporary price drop in the apartment market, although the high prices alongside the increase in mortgage repayments, do not allow a large part of the public to even think about buying an apartment.
And in the meantime, here are deals from the last week:
Tel Aviv
A 3-room apartment on Philadelphia Street Tel Aviv, 96 square meters, 8th floor with an elevator without a balcony without parking was sold for NIS 2.95 million.
A 3-room apartment on Yarakon Street with an area of 101 square meters, 6th floor out of 25, was sold for NIS 13.9 million.
5-room apartment on Shatolim Street, 125 square meters, 21st floor out of 22, for NIS 4.05 million
3-room apartment, Keshet Street, Kiryat Shalom, 65 square meters, 3rd floor out of 4, for NIS 2.34 million.
Ramat Gan
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A 5-room apartment on Ma’ale Habanim Street, 120 square meters, 2nd floor, no elevator, no balcony, no parking. Sold for NIS 3.5 million. “The apartment is in the Yad Labanim neighborhood in an elevated position and overlooks a pastoral view of oak trees,” explains the broker of the transaction Merrill Capital, “The neighborhood attracts a young population, thanks to the many cafes and bars that have opened in the area.
--The rear apartment is bright and spacious, located on a one-way street, and has a special character. The owner was a veteran in the field of cinema and not a few celebrities were interested in buying it. The apartment was marketed for less than a week and within a month the sale deal was signed. The asking price was NIS 3.550 million and the apartment was sold for NIS 3.5 – with almost no decrease in price.”
earing
4-room apartment, Turquoise Street, 95 square meters, for NIS 1.48 million.
4-room duplex, Oren Street, 110 square meters, 60 square meters balcony, 4th floor out of 4, for NIS 1.75 million.
5-room apartment, Turquoise Street, 96 square meters, for NIS 1.66 million.
Holon
2.5 room apartment, Shaar Zion Street, 55 square meters, for NIS 1.73 million
3-room apartment, Rehavam Zaevi Street, 70 square meters, for NIS 1.62 million
Ashdod
5-room apartment, Keren Hayesod Street, District 4, 130 square meters, for NIS 2.2 million
Herzliya
On Lovatkin Street, 4-room apartment, 100 square meters, parking, for NIS 2.55 million.
streets
On Miriam Mizrahi Street, 6-room duplex, 165 square meters + 50 square meters sun terrace, 7th floor out of 8, 2 parking spaces and a warehouse, for NIS 3.05 million.
On Levi Eshkol Street, 3-room apartment, 80 square meters + 10 square meters of sun terrace, 4th floor out of 8, for NIS 2.2 million.
On Aharoni Street, a renovated 3.5-room apartment in a building from 1975, about 91 square meters, 4th floor out of 6, including parking and storage for NIS 2.29 million.
On Miriam Mizrahi Street, a 6-room duplex, about 165 square meters + 50 square meters of sun terrace, 7th floor out of 8, 2 parking spaces and a warehouse, for NIS 3.05 million.
Dimona
On Modi’in Street, a 2-room apartment, 48 square meters for NIS 380,000
On Oli Gardom Street, a 4-room apartment, 98 square meters, for NIS 1.02 million
Duplex 5.5 rooms, Ein Gedi Street, neighborhood 9, 167 square meters, floor 2 of 2, parking, elevator, sold for NIS 1.46 million
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