Israel Real Estate Review

Foreigner pays NIS 71m for Tel Aviv penthouse

admin — Tue, 17 Aug 2010 19:32:47 +0000

The price for the 815-sq.m. triplex at 46 Frishman St. is one of the highest in Israel.

A foreign resident from a Western European country has exercised his option to buy the rooftop triplex at the Frishman 46 project in Tel Aviv for NIS 71 million. The 815-square meter triplex, on the building’s 28th through 30th floors, has a 240-square meter balcony, five parking spaces, and three storerooms. The price per square meter of NIS 76,000 is one of the highest in Israel, even though the buyer purchased the property in shell condition.

The developer, Euro Sat Investments Ltd. (TASE:ERST) bought the property – known as “the pit” – at the corner of Frishman Street and Dizengoff Street from the receiver three and a half years ago. The company is now building the high-rise and expects occupancy in two years.

The buyer signed an option to buy the apartment last month, and deposited $10 million with a trustee to guarantee the terms of the deal, to buy the apartment for $22 million. By exercising the option by the deadline, he won a NIS 10 million discount on the price.

Published by Globes [online], Israel business news - www.globes-online.com – on May 16, 2010

Foreigner pays NIS 7.5m for Tel Aviv apartment

admin — Tue, 17 Aug 2010 19:31:25 +0000

Prices in the project range from NIS 40,000 to NIS 80,000 per square meter.

A foreign resident has bought a 145-square meter apartment on the 15th floor of the Meier on Rothschild buildingunder construction at the corner of Rothschild Boulevard and Allenby Street in Tel Aviv. The price was NIS 7.5 million, or NIS 52,000 per square meter. Prices in the project range from NIS 40,000 to NIS 80,000 per square meter.

The latest purchaser from overseas joins Nathaniel “Nat” Rothschild, who has bought a 500-square meter triplex in the building for over NIS 60 million.

Berggruen Residential Ltd. (TASE:BRGN.B1) said that half the space in the Meier on Rothschild building had been sold.

Last month, the Tel Aviv Local Planning and Building Commission allowed Berggruen Residential, owned by Nicolas Berggruen and his partner Hagag Cohen Investments, to increase the height of the 27-storey building to 37 storeys. In practice, the building will have 32 residential floors topping the 13-meter high lobby.

Published by Globes [online], Israel business news - www.globes-online.com – on July 14, 2010

Apartment in Rehavia sold for NIS 3.85 million

admin — Tue, 17 Aug 2010 19:29:32 +0000

Seven apartments were also sold in Jerusalem’s Mishkanot David project.

An apartment on Benjamin Metudela Street in Jerusalem’s luxury Rehavia neighborhood was sold for NIS 3.85 million, according to the Israel Tax Authority database. Details of the apartment, the buyer and seller were not disclosed. Apartments in the downtown neighborhood are among the most expensive in Israel, with prices starting at NIS 20,000 per square meter.

Austis Ltd. has sold seven apartments in its Mishkanot David project on Bethlehem Road in Jerusalem’s Baka neighborhood in the past month. An 85-square meter three-room garden apartment with a 70-square meter yard was sold for NIS 1.46 million, and a 100-square meter four-room apartment with a 12-square meter balcony was sold for NIS 1.53 million.

Published by Globes [online], Israel business news - www.globes-online.com – on August 9, 2010

US family pays NIS 5.3m for Talbieh apartment

admin — Tue, 17 Aug 2010 19:27:36 +0000

The building is in walking distance from the Old City and the Western Wall.

An American Jewish family has paid NIS 5.3 million for a four-room apartment on Jabotinsky Street in Jerusalem’s Talbieh neighborhood. The buyers paid NIS 35,000 per square meter of built space for the 149-square meter third-floor four-room apartment with a 20-square meter balcony and 12-square meter storeroom. The building is owned by Kim Lustigman Enterprises and Construction Ltd.

A French-Israel artist bought a fourth-floor three-room apartment in the project for NIS 4.8 million a few months ago.

The building, slated for preservation by the Jerusalem Municipality, is in the final stages of redevelopment. The building is in walking distance from the Old City and the Western Wall.

Published by Globes [online], Israel business news - www.globes-online.com – on August 16, 2010

Apartments sold and rented in July

admin — Tue, 10 Aug 2010 20:47:13 +0000

Second-hand apartments sold
Tel Aviv and central region
Tel Aviv: An 85-sq.m. four-room apartment on Tirat Zvi St., Nahalat Yitzhak, was sold for NIS 1.6 million (Re/MAX).
Petah Tikva: A 70-sq.m. three-room apartment on Fogel St. was sold for NIS 660,000. An 80-sq.m. three-room apartment on Bialik St. was sold for NIS 815,000 (Anglo-Saxon).

Kfar Saba: A 110-sq.m. five-room apartment in need of renovation on Lavuna St. was sold for NIS 1.22 million. A 127-sq.m. four-room apartment on Gordon St. was sold for NIS 1.16 million. A 110-sq.m. four-room apartment on Jerusalem St. was sold for NIS 1.26 million (Re/MAX).

Hod Hasharon: A 100-sq.m. three-and-a-half-room apartment on Ha’Oranim St. was sold for NIS 1.18 million (Realty Executives).

Rishon LeZion: A 130-sq.m. four-and-a-half-room apartment on Sharira St. was sold for NIS 1.69 million. A 100-sq.m. four-and-a-half-room apartment on Mania Shochat St. was sold for NIS 1.13 million. A 100-sq.m. four-room apartment on Wolfson St. was sold for NIS 1.13 million (Realty Executives).

Beer Yaakov: A 170-sq.m. six-room house on a 320-sq.m. lot was sold for NIS 1.67 million (Anglo-Saxon).

Jerusalem and environs
Jerusalem: A 70-sq.m. three-room apartment on Mevo Sarah St. was sold for NIS 1.14 million (Re/MAX).

Haifa and the North
Haifa: A 90-sq.m. four-room apartment on Herzl St., in the Hadar, was sold for NIS 400,000.A 50-sq.m. two-and-a-half-room apartment on Tzarfat St. was sold for NIS 335,000 (Re/MAX).

Rentals
Tel Aviv: A two-room apartment on Zamenhof St., central Tel Aviv, was leased for NIS 4,250 a month (Levi Itzhak).

Rehovot: A four-room apartment on Hanassi St. was leased for NIS 4,000 a month (Levi Itzhak). A four-room apartment on Israel Shahar St. was leased for NIS 3,800 a month (Anglo-Saxon).

Published by Globes [online], Israel business news – www.globes-online.com

40% of Mortgage Holders Concerned About Ability to Repay

admin — Mon, 09 Aug 2010 21:03:11 +0000

40% of mortgage holders in Israel are concerned about their ability to repay the loan, “IDF Radio” (Galei Zahal) reported today based on a survey by
Shiluv Millward Brown. Mortgage holders are particularly worried by possible future interest rate rises by the Bank of Israel, which would make their mortgages more expensive.

Last month, the Bank of Israel raised the interest rate by 25 basis points to 1.75% mainly because of the ongoing rise in apartment prices.

Shiluv Millward Brown VP Itay Oleinik said, “In a country in which one third of the population has a mortgage, and for 63% of them repayments represent a large proportion of their income, a rise in the interest rate may hurt the same population group that the banks are trying to help – young people, of whom half are worried by their ability to repay the mortgage they have taken.”

Dani Avrahami, a 30-year old architect and mortgage holder said, “I think that there is no proportionality between the prices of apartments and salaries. The young generation has no chance of buying an apartment, and people under 30 will live in rental accommodation all their lives.”

According to the Shiluv Millward Brown survey, 84% of young people say that their mortgage is a very significant part of their income.

Published by Globes, Israel business news – www.globes-online.com

Bank of Israel Sees House Prices Continuing to Rise

admin — Mon, 09 Aug 2010 20:59:03 +0000

Bank of Israel expects house prices to continue rising over the coming year, albeit, at a more modest pace. This prediction was presented by the Bank of Israel during the monetary discussions last month, when the central bank surprisingly decided to raise the interest rate by 25 basis points to 1.75%. All the members of the committee recommended to Bank of Israel Governor Prof. Stanley Fischer to raise the interest rate, mainly because of the sharp rise in house prices and rents.
The Bank of Israel’s management also discussed the rise in inflation expectations above the top range of the government’s target because of the sharp rise in housing prices, which comprises 21% of the Consumer Price Index (CPI). The Bank of Israel is concerned about the continuing rise in apartment prices and tried to cool off the market by raising interest. The effectiveness of this measure will be tested in the coming months.

In this most recent protocol, the Bank of Israel devoted much time to the issue of rising apartment prices and rents. The Bank of Israel clearly states that apartment prices and rents will continue to rise above its forecasts from several months ago.

The protocol said, “The housing component of the CPI is expected to rise over the next 12 months at a higher rate than estimated previously.”

According to the Central Bureau of Statistics, the average price of an Israeli home rose 21% in the 12 months ending April 30, 2010. The Bank of Israel attributes to reasons to this housing boom, “Low interest and the slow response in the supply of apartments to the rise in apartment prices.”

The Bank of Israel does feel that the pace of housing prices rises will moderate over the next year.

Published by Globes, Israel business news – www.globes-online.com

Gov’t to Pay NIS 30m for Building Freeze Damages

admin — Sun, 08 Aug 2010 21:01:43 +0000

The Knesset Finance Committee today approved a NIS 30 million transfer to the claims committee for damages arising from the building freeze in Judea and Samaria, which was declared nine months ago.
Knesset Finance Committee chairman MK Moshe Gafni (United Torah Judaism) said that this was an initial amount. He added that he hoped that the money authorized by the committee would be transferred as quickly as possible to those hurt by the building freeze.

According to the latest Central Bureau of Statistics figures, there have been no housing starts in Judea and Samaria, because of the building freeze. There were 762 housing starts in Judea and Samaria in the fourth quarter of 2009 and 1,873 in 2009 as a whole.

Published by Globes [online], Israel business news – www.globes-online.com –

Regulator Stands Rirm on Tougher Mortgage Terms

admin — Sun, 08 Aug 2010 21:00:26 +0000

Supervisor of Banks Rony Hizkiyahu has rejected a request by MK Carmel Shama (Likud) to ease mortgage requirements for people eligible for Ministry of Housing and Construction benefits.
Shama appealed to Hizkiyahu two months ago, when Hizkiyahu toughened the terms for mortgages by raising the amount of capital a mortgage applicant must provide to buy a home. Shama asked Hizkiyahu to exempt people eligible for Ministry of Housing benefits, including young couples and new immigrants buying their first apartment, from this requirement. Hizkyahu said no, although he admitted that the Bank of Israel had considered such an exemption.

“We considered initiating a differentiation in applying the guideline, but decided that it would be wrong to do so,” said Hizkiyahu in his letter to Shama.

“The extreme rise in prices and the low interest rate environment are pushing the public, including people eligible for benefits, to buy apartments at high prices by taking large loans. In view of the high home prices, these purchases are made with high financing rates relative to the borrowers’ income. Under these circumstances, various economic developments, such as a rise in the interest rate or a drop in the disposable income of people eligible for benefits, are liable to affect their ability to meet the loan repayments.”

Published by Globes [online], Israel business news – www.globes-online.com –

Average price of Tel Aviv apartment over NIS 2.3m

admin — Sun, 08 Aug 2010 20:48:39 +0000

The average nominal price of an apartment in Israel was 3.2% higher in the second quarter of 2010 than in the preceding quarter, and 17.2% higher than in the corresponding quarter of 2009, the government assessor reported today. The Consumer Price Index (CPI), excluding housing, rose by 2.2% between the second quarter of 2009 and the second quarter of 2010.
The government assessor reviewed a sample of 4,700 purchases of apartments in 16 cities in the first and second quarters of 2010.

In Tel Aviv, the average price of a four-room apartment rose 32% to NIS 2.31 million in the second quarter from NIS 1.76 million in the corresponding quarter. In Herzliya, the second most expensive city, the average price of a four-room apartment rose 14% to NIS 1.65 million in the second quarter from NIS 1.44 million in the corresponding quarter. The average price of a four-room apartment in Jerusalem rose 19% to NIS 1.62 million in the second quarter from NIS 1.35 million in the corresponding quarter; the average price of a four-room apartment rose in Haifa rose 20% to NIS 985,000 from NIS 823,000, and the average price of a four-room apartment rose in Beersheva rose 23% to NIS 626,000 from NIS 508,000.

The government assessor said that while apartment prices were affected by several factors, it was difficult to isolate the effect of any single factor. However, it seems that the low inventory of new apartments for sale – about 13,000 units – is a dominant factor, which is pushing prices higher.

Published by Globes [online], Israel business news – www.globes-online.com – on August 8, 2010