Apartment prices up 2.5% in Q1
Chief governmental assessor's review of housing market in first three months of 2011 reveals ongoing rise in prices due to 'apartment shortage'
The review, which looked into 16 different cities, revealed that apartment prices have gone up by 2.5% compared to the last quarter of 2010, and by 12.3% compared to the first quarter of 2010. Prices were up 29.4% compared to the first quarter of 2009.
The review reveals that the most popular apartments in the housing market are still four-room apartments. According to the document, "The number of deals involving small three-room apartments is still relatively low in most cities."
The price of an average four-room apartment in Jerusalem stood at some NIS 1.68 million in the first quarter of the year, a 4% rise compared to the fourth quarter of 2010 and a 9% rise compared to the first quarter of 2010.
The price of an average four-room apartment stood at NIS 2.47 million (about $710,000), a 3% rise compared to the last quarter of 2010 and 9% compared to the first quarter of last year.
A four-room apartment in Haifa cost NIS 1.01 million ($290,000) in the previous quarter, a 6% rise compared to the last quarter of 2010; in Ashdod – about NIS 1 million ($290,000), a 5% rise; in Rehovot – NIS 1.09 million ($320,000), a 1% rise; in Holon – NIS 1.18 million ($340,000), a 2% rise; and in Hadera – NIS 831,000 ($241,000), an 8% rise.
Prices rose in the periphery even more than in the center. A four-room apartment in Eilat cost NIS 789,000 ($230,000) – a 7% increase compared to the last quarter of 2010; in Ashkelon – NIS 692,000 ($201,000), a 4% rise; in Beersheba – NIS 606,000 ($176,000), an 8% rise; and in Nahariya – NIS 729,000 ($212,000), a 1% rise.
1% drop in Petah Tikva prices
Prices in Rishon Lezion stood at NIS 1.25 million ($360,000), similar to the price in the last quarter of 2010. The only places where housing prices dropped was Petah Tikva, where they stood at NIS 1.26 million ($370,000) – a 1% drop compared to the last quarter of 2010, and in Netanya, where prices dropped by 2% compared to the previous quarter, totaling NIS 1.16 million ($340,000).
The assessor notes in his review that "the limited supply of new apartments which have yet to be sold, which totals some 14,000 apartments, is the most influencing factor leading to ongoing pressure for an increase in apartment prices."
He adds that "as for the demand, on the other hand, there are many variables with conflicting effects: Expectations for ongoing growth on the one hand, and expectations for a further rise in the interest rate and new governmental moves aimed at reducing apartment prices on the other hand.
"It seems, however, that the combined effect of these factors is weaker compared to the effect of the supply figures."
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