Ra'anana buyer fixed price tender winners announced

Neve Zemer

The tender includes 104 housing units starting at NIS 1.46 million. The Atlit tender results were also announced.

The Ministry of Finance, Ministry of Construction and Housing, and Israel Lands Authority (ILA) today published the results of two buyer fixed price tenders for which bids were closed yesterday: one in Ra'anana in the new Neve Zemer neighborhood in the northern part of the city, and the other in Atlit. Demand for both tenders was lively, with all the housing units involved being marketed to developers and contractors.

The Ra'anana tender included three different sites zoned for construction of a total of 104 housing units. Five bids were filed in this tender. The winning companies were Giyora Sharbat (a plot for 23 housing units) and Rami Shaviro Engineering, Building, and Investments (two plots totaling 81 housing units). According to the tender results, an 80-sq.m. apartment will be sold to eligible buyers starting at 1.459 million, a 100-sq.m. apartment starting at NIS 1.786 million, and a 120-sq.m. apartment starting at NIS 2.112 million. These prices include parking, storage space, balconies, and VAT. According to figures from the Ministry of Finance and the ILA, these prices reflect a 16% discount on the market price. Also according to the tender results, the discount granted by developers and contractors on the maximum price in the tender is 3.9%-9%.

The Atlit tender includes two different sites located in the city center zoned for a total of 53 housing units. The same company, Shatit, won both lots. According to the tender results, an 80-sq.m. apartment can be sold starting at NIS 751,000, a 100-sq.m. apartment can be sold starting at NIS 922,000, and a 120-sq.m. apartment can be sold starting at NIS 1.092 million. These prices include parking, storage space, balconies, and VAT. According to figures from the Ministry of Finance and the ILA, these prices reflect a 22% discount on the market price. Also according to the tender results, the winning bids reflect an 8% discount on the maximum price set by the state in the tender. This tender is the second buyer fixed price tender held in Ra'anana.

The two tenders now closed add 157 discount apartments to the list of successfully closed buyer fixed price tenders sold to developers or contractors. According to a "Globes" survey of the supply of discounted housing units, these tenders total 7,130 housing units to date.

It is important to note that as in every buyer fixed price tender, this is only the first stage of the plan. After a contractor or developer wins a tender, another lengthy procedure takes place, in which the winner proposes a project plan that requires approval from the local authority and a building permit. This means that the tender now closed will produce housing units for actual occupancy only in two years at best. As of now, the lottery list has been opened for only two projects: one in Afula, and one in Lod. No date for opening the lottery list has been set yet for the other tenders. Only eligible parties can register for a buyer fixed price lottery, and the entire project and all the apartments in it will be sold exclusively to those declared eligible by the Ministry of Construction and Housing. A lottery winner is barred from selling his discounted apartment for five years from the date on which he received the apartment key, but can rent it out on the free market.

Published by Globes [online], Israel business news - www.globes-online.com - on March 15, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

5 Comments
View comments in rows
Update by email about comments talkback
POST
Comments
Your name
Please insert your name
Content
Hyperlink in a new window Hyperlink Right Left underline italic bold Bulleted List Ordered List Face1 Face2 Face3 Face4 Face5 Face6
Your comment

Thanks
You comment was recieved and soon will be published.
In posting comments, I agree to abide by the Terms of Use
Globes encourages lively and frank debate, but posts that the editors consider merely abusive or otherwise inappropriate will be removed. Report inappropriate content
Thank you for posting your comment, which will be reviewed for publication.
Loading Comments...load
Load more comments
Twitter Facebook Linkedin RSS Newsletters גלובס Capital Markets Conference 2016