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The government’s housing program only spurred investors

Dreaming of an apartment?

Keep dreaming: The Tishrei holidays, which all took place in September this year, led to a decrease in the number of real estate transactions during it. Who did not stop? The investors, who greatly increased their weight among apartment buyers before the tax was updated. Estimation:

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• Real Estate

• Apartments

• Investors

Walla!

Of money

Monday, 15 November 2021, 09:05 Updated: 09:29

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This morning, the Chief Economist of the Ministry of Finance publishes a survey of residential real estate in September. Before approaching the numbers, a bleak picture emerges from the data: The real estate market in Israel belongs to those who can afford more than one apartment, or in their more familiar name, investors.

If anyone thought that the measures planned by the Israeli government to fight the cost of housing would yield immediate results, then he was right, but in the meantime the immediate results are in the opposite direction: real estate investors, fueled by fears of a purchase tax increase

, Which was mostly holidays, with very few working days in between, the volume of apartment sales in Israel dropped to 8,000 apartments, a figure close to 17% from last September, when the holidays occurred only during part of the month (and, except for Yom Kippur, holiday eves coincided On weekends, on the other hand, there was a decrease of only 5% in the total number of investment transactions (in a month with a few working days!), That is, their specific gravity increased miraculously.

According to the Ministry of Finance, the number of daily investment transactions has increased fourfold compared to September last year!

The Ministry of Finance adds that reports from the field of October transactions, which have not yet been compiled into an official figure, indicate an increase in this trend, until it can be estimated without any exaggeration that one in four apartments in Israel is sold to an investor.

This trend has apparently intensified due to the government's plan to test real estate investors at a higher rate, which has led those who have been hesitant to hurry up and close deals.

In other words: the government's plans to fight real estate prices Before the tax is updated.

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While the dream of an apartment is moving away full of few Israelis, investors are taking over the market.

Embarrassingly, even with government encouragement (Photo: ShutterStock)

The numbers that tell the story of residential real estate in Israel

• In September, about 8,000 apartments were purchased, a significantly lower amount than the one that characterized the real estate market in previous months, due to the Tishrei holidays that were concentrated in September this year. Compared to September last year, this is a decrease of 17%. Double this rate (32%) compared to September last year

• Investors' purchases in September amounted to 1,700 apartments, a decrease of 5% compared to September last year, a very moderate decline given the small number of working days in September this year. -40% compared to September last year Investor weight reached 21.5%, the highest since March 2016.

• Investors' sales in September stood at 1.5 thousand apartments, a decrease of 20% compared to September last year, "inventory" of apartments by investors recorded a moderate increase of about two hundred apartments in September, This "inventory" began to decline in April 2016 (after a cumulative increase of approximately 58,000 apartments in the years 2015-2010, before the purchase tax on them was heavier in June 2015).

• Contractors' sales in September totaled 3,000 apartments, a decrease of 15% compared to September last year. On the other hand, the Tel Aviv area stands out with the continued sharp increase in these sales, when in the first nine months of this year the record for annual sales in this area was broken for at least the last twenty years.

• Purchases of "first apartment" in September amounted to 3,500 apartments (including "price per occupant"), a decrease of 19% compared to September last year.

After deducting the government-subsidized purchases, the purchases of young couples in the free market in September amounted to 2,700 apartments, a decrease of 16% compared to September last year.

Purchases of housing improvers also totaled 2,700 apartments, compared to September last year which is a decrease of 20%.

Preliminary data for October indicate a sharp increase in the number of transactions and the weight of investors.

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