Kahlon: Housing must be next reform

Moshe Kahlon: We need more three-room apartments in the market.

"A leader must have the confidence and not think about what the media will say and write about him," said Moshe Kahlon at the Atrade meeting in Rishon LeZion yesterday. "Leadership is responsibility, regardless of what the media says about you. Leadership is responsibility, not prestige."

Earlier this week, Kahlon, a former Likud minister, announced that he will return to politics. "The next reform must be in housing. We need more three-room apartments in the market. The Israel Land Authority releases 100 housing units out of the 100 it holds. In practice, ten contractors bid and buy the 100. In order to maximize, they sell 100 housing units for 130. The next time that the Israel Land Authority releases 100 housing units, they will sell for 160. In other words, the Israel Land Authority raised the price of land by 60%. Data are then published showing that land prices in Tel Aviv rose 430%, and the Ministry of Finance is surprised. What exactly surprises it?" he said.

"I think that contractors should be told, 'You have 100 housing units. If you build the highest quality three-room apartments in the shortest time, you will get the land at a reduced price.' The contractors will prefer three-room apartments over four and five-room apartments, and they'll get the land cheaply. Construction is the number one growth stimulant.

"As for mayors who sometimes block the construction of three-room apartments, the solution is to expropriate their license to issue permits and to outsource the permits."

Published by Globes [online], Israel business news - www.globes-online.com - on April 10, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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