The government assessor published further evidence today of the problem of the high cost of housing in Israel. According to the government assessor's report, the first quarter of 2016 saw a rise of 1.6% (in nominal terms) in the average price of the housing units surveyed, alongside a rise in the number of transactions, in comparison with the previous quarter.
During this period, the Consumer Price Index excluding housing fell 0.9%.
In comparison with the first quarter of 2015, home prices rose by an average nominal 8% in the cities surveyed.
The Government Assessor's Department explained that although the first "buyer's price" projects were starting to make their way on the market, this was a matter of first buds only, and that the full effect of the program, where it applies, had not come through in the quarter surveyed.
Commenting on the 13% rise in the number of transactions in housing units in the first quarter, the government assessor's report states that "those carrying out the transactions are presumably not among the section of the population that falls within the criteria of entitlement for participation in the buyer's price program."
The following figures are for the average piece of a four-room apartment in the first quarter of 2016, and the change from the fourth quarter of 2015 and from the first quarter of 2015:
Eilat NIS 1,097,000, 5%, 12%; Ashdod NIS 1,399,000, -2%, 4%; Ashkelon NIS 1,087,000, 0%, 13%; Beersheva NIS 1,049,000, 1%, 13%; Herzliya NIS 2,337,000, 3%, 14%; Holon NIS 1,672,000, -3%, 6%; Haifa NIS 1,379,000, -1%, 3%; Jerusalem NIS 1,929,000, 0%, 1%; Kfar Sava NIS 1,764,000, -2%, 5%; Modi'in NIS 1,844,000, 4%, 10%; Netanya NIS 1,636,000, 3%, 9%; Petah Tikva NIS 1,603,000, 3%, 9%; Rishon LeZion NIS 1,706,000, 1%, 9%; Rehovot NIS 1,526,000, 2%, 9%; Ramla NIS 1,227,000, 4%, 7%; Tel Aviv NIS 2,961,000, 4%, 8%.
Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2016
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