New home sales in Israel still slowing

construction photo: Tamar Matzafi

Purchases of new housing units dropped almost 20% in the past 12 months.

The slowdown in sales of new homes is continuing, according to a survey published today by the Central Bureau of Statistics. 4,840 new homes were sold in February-April 2018, 2.5% fewer than in the three preceding months. New home sales in May 2017-April 2018 slid 19.2%, in comparison with May 2016-April 2017. 35% of the new homes sold over the past year were in the central district, 18% in Tel Aviv 16% in Haifa, and 12% in the south. The Jerusalem and northern districts each accounted for 8% of sales. The Central Bureau of Statistics said that trend figures from the past two months showed a 1.2% rise in new home sales in March and April 2018, an average of 1,660 housing units a month. This trend follows a long period from July 2015 until February 2018 during which sales of new homes fell by an average of 1.7%, 2,270 housing units, per month.

In absolute numbers there are cities that stand out with steep falls in sales of new housing units over the past year in comparison with the preceding year. The volume of sales was obviously affected by projects or projects whose marketing had ended, some in the framework of the Buyer Fixed Price plan. In Lod, for example, the first city in which marketing of housing units under the Buyer Fixed Price plan began, only 24 new homes were sold over the past year, compared with 231 in the preceding year. 881 new housing units were sold in Tel Aviv in the past 12 months, compared with 1,112 in the preceding 12 months. In Kiryat Motzkin, 645 new homes were sold over the past year, compared with 1,048 in the preceding year. 327 new homes were sold in Netivot in the past year, compared with 595 new homes in the preceding 12 months. Only 190 new housing units were sold in Modi'in over the past year, compared with 352 in the preceding year. In Rishon Lezion, on the other hand, 1,414 new homes were sold in the last 12 months, compared with 545 new homes in the preceding year. New home sales were also up in Haifa from 801 in the preceding year to 906 in the past year.

Published by Globes [online], Israel business news - www.globes-online.com - on June 14, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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construction photo: Tamar Matzafi
construction photo: Tamar Matzafi
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