Buying an apartment in Israel becoming an impossible task (illustration)
Photo: Index Open
New apartment prices up 6% in Q1
As government works to reduce home prices, Housing Ministry reports 5% rise in cost of second hand flats from first quarter of 2012
The government is working on plans to reduce housing prices, yet apartment are becoming increasingly expensive: The prices of new apartments went up by 6% in the first quarter of 2013 from the same period last year, and the prices of second hand apartments increased by 5%, the Housing and Construction Ministry said this week.
According to the data, the average price of a new apartment in the first quarter of 2013 stood at NIS 1.5 million (about $420,000). The average price of a second hand apartment in the first quarter of 2013 stood at NIS 1.128 million ($320,000). Compared to the previous quarter (Q4/2012), second hand apartment prices rose 1%, while new apartment prices climbed 3% over that same period.
Ministry officials said they would suggest that the housing cabinet take unusual measures to stabilize home prices.
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The figures further show that in the cities of Gedera, Yavne, Modiin Illit and Rehovot, a second hand four-room apartment could be purchased for an average price lower than NIS 1.2 million ($340,000). In Beer Yaakov, Bnei Brak, Yavne, Modiin, Mazkeret Batya, Tzur Yitzhak, Rosh Ha'ayin, Rehovot and Ramla, a new four-room apartment can be bought for an average price lower than NIS 1.35 million ($380,000).
Afula: 3 rooms, less than NIS 500,000
A review conducted by the Housing Ministry's Economic Analysis and Information Division, which included real estate transactions executed in 75 major communities across the country, examined the average price of an apartment in the first quarter of 2013 according to the number of rooms and geographical region.
In northern Israel, the average price of a second hand three-room apartment stood at less than NIS 500,000 ($140,000). Apartments could be purchased for this sum in the first quarter of the year in the cities of Tiberias, Tirat Carmel, Migdal Haemek, Ma'alot, Nazareth Illit, Akko, Afula, Safed, Kiryat Ata, Kiryat Yam and Kiryat Shmona.
The price of a second hand four-room apartment stood at less than NIS 700,000 ($195,000) in the cities of Tiberias, Migdal Haemek, Nazareth Illit, Afula, Safed and Kiryat Shmona. The price of a new four-room apartment stood at less than NIS 800,000 ($225,000) in the cities of Beit She'an, Tiberias, Migdal Haemek and Afula.
In southern Israel the average price of a second hand three-room apartment stood at less than NIS 500,000 ($140,000) in the cities of Ofakim, Dimona, Arad and Kiryat Malachi. In Beersheba, such an apartment cost NIS 500,000. The average price of a second hand four-room apartment stood at less than NIS 600,000 ($168,000) in the cities of Ofakim, Dimona, Arad and Sderot.
The average price of a new four-room apartment stood in the first quarter of 2013 at less than NIS 1 million ($280,000) in the cities of Ashkelon, Beersheba and Kiryat Gat. It should be noted, however, that in most communities hardly any transactions were executed in this group.
Lod: 4 rooms, NIS 700,000
In central Israel, the average price of a second hand three-room apartment stood at less than NIS 900,000 ($252,000). Apartments could be purchased for this sum in the first quarter of the year in the cities of Holon, Yavne, Netanya and Rehovot.
In Or Yehuda, Bat Yam and Modiin Illit, prices were slightly over NIS 900,000. In Lod and Ramla the prices were particularly low, standing at NIS 580,000 ($162,000) and NIS 640,000 ($179,000), respectively.
The average price of a second hand four-room apartment stood in the first quarter of the year at less than NIS 1.2 million ($340,000) in the cities of Gedera, Yavne, Modiin Illit and Rehovot. In Lod and Ramla the price stood at NIS 770,000 ($215,000) and NIS 950,000 ($265,000), respectively.
The average price of a new four-room apartment stood at less than NIS 1.35 million ($380,000) in the cities of Beer Yaakov, Bnei Brak, Modiin, Mazkeret Batya, Tzur Yitzhak, Rosh Ha'ayin, Rehovot and Ramla.
The city leading the apartment price chart is Tel Aviv, with an average price of NIS 2.69 million ($750,000) for a new apartment.
In the Jerusalem area, the average price of a three-room apartment stood at less than NIS 900,000 ($252,000). Apartments could be purchased for this sum in the first quarter of the year in the cities of Beit Shemesh and Ma'ale Adumim. In Beitar Illit, the price was slightly over NIS 900,000.
The average price of a second hand four-room apartment stood at less than NIS 1.2 million ($340,000) in the cities of Beit Shemesh and Beitar Illit. In Ma'ale Adumim the price was slightly over NIS 1.2 million. The average price of a new four room apartment in Beit Shemesh stood at less than NIS 1.15 million ($320,000). It should be noted that a small number of transactions was recorded in this category in the Jerusalem vicinity.
