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Prices unchanged
Photo: Yaron Brener
Treasury reports 27% drop in apartment sales
December 2011 sees major drop in demand for apartments but prices remain largely unchanged
Some 7,400 apartments were purchased in Israel
in December 2011 signifying a 27% drop compared with December 2010, an annual survey published by the Finance Ministry indicates.
The survey also suggested that investors continue to pull out of the real estate market following the government's decision to introduce a tax exemption until 2012. The tax on apartment sales will eventually be abolished.
According to the survey, the drop was mostly noted in the purchase of new apartments. The sale of new apartments in December 2011 plummeted 46% compared with the same period in 2010, while the sale of existing apartments dropped 18%.
Realty
Tani Goldstein
Geocartography Research Institute says apartment prices in Israel are dropping
Last November saw an even sharper drop of apartments purchased for investment purposes – a whopping 50% compared with November 2010.
The question is then posed whether the drop in demand will also cause a reduction in prices. According to government data published Wednesday, 2011's fourth quarter saw apartment rates drop by an average rate of only 1%.
