The average price of a four-room apartment in Tel Aviv has risen 11% in the past 12 months, according to the Government Assessor's survey for the first quarter of 2012. Nationwide, the average price of a four-room apartment was 5% higher in the first quarter than in the corresponding quarter, and 1% higher than in the preceding quarter.
The Government Assessor's survey examines prices of four-room apartments in 16 towns and cities nationwide. The report confirms today's report by the Ministry of Housing and Construction, which found that new and second-hand prices have risen sharply.
The average price of a four-room apartment in Tel Aviv was NIS 2.56 million in the first quarter. Prices rose in all of the cities covered in the survey, with the exception of Ashkelon. The average price of a four-room apartment rose 8% between the corresponding quarter and the first quarter in Beersheva, and by 7% on both Haifa and Ashdod.
The Government Assessor said, "There was a small rise in the average price of apartments covered in the first quarter of 2013, compared with the preceding quarter, and the number of transactions was unchanged. The survey covers the period in which the Bank of Israel's latest mortgage restrictions, especially on investors, came into effect. The measures had no effect on home prices in this quarter, and no reduction in the number of home sales or in prices was seen in the apartments covered in the survey."
Tel Aviv-Jaffa and Bat Yam Contractors Association chairman Avner Levy said in response, "The latest austerity measures, such as the tax on people buying larger apartments and the higher purchase costs, are an integral part of the harsh reality the public has had imposed on it. So long as the government and the Ministry of Finance pursue their utter disregard of the public, home prices will continue to rise. Unless there is a fundamental change soon, there will be misery for generations."
Real Estate Appraisers Association in Israel chairman Ohad Danus said, "The figures show that prices in the inner suburbs and nationwide are rising, alongside the rise in prices in Tel Aviv and Jerusalem over the past year. This means that investors, on whom the Bank of Israel has declared war, are channeling their money to cheaper towns in response to the restrictions imposed by the central bank, as we predicted. 2013 is a lost year, and unless the government begins to seriously deal with the housing supply, and focus on measures to encourage the market, rather than suppress it, 2014 will also be a year with no good news for the middle class and young couples."
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2013
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