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The city of Harish is growing fast, so why aren't all apartments hijacked? - Walla! Real Estate

2019-12-15T06:19:58.926Z


The extensive housing supply in the new city of Harish helps companies to expand their operations, but in some cases the marketing of housing units becomes challenging


The city of Harish is growing fast, so why aren't all apartments hijacked?

The extensive housing supply in the new city of Harish helps companies to expand their operations, but in some cases the marketing of housing units becomes challenging

Harish (Photo: Hila Zion)

Harish Real Estate Construction Real Estate (Photo: Hila Zion, Walla System! NEWS)

The city of Harish in northern Hasharon is one of the most prominent projects promoted by the Ministry of Housing in recent years. The latest data from the Central Bureau of Statistics, released last month, indicates continued intense growth of the city which is a target for young couples. The CBS even named it the number one settlement in Israel in the number of new apartments sold in the third quarter of this year, 407, a growth of more than 13% compared to the corresponding quarter in 2018, even after previous quarters were noticeable in the city's sales.

The ability to meet the high demand for plowing apartments is based on an extensive supply of apartments in the developing city, which can help explain the data of the construction companies operating in the plow. These indicate that despite the demand, the companies operating in the city are not always able to market their entire supply of apartments easily.

An examination of the financial statements for the third quarter recently published by four stock exchange-traded construction companies that operate in Harish - Hanan Moore, Africa Residential, Ashdar and Demri - shows that they all have a significant number of apartments marketed in the city, and that they enjoy relatively significant sales volume. Alongside this, the low sales volume in some of the projects they are building in the city, is evident from the reports data.

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In all, the four companies together presented approximately 1,050 apartments in various stages of execution and marketing, from projects that have been completed to projects that have already been completed before, and a total of approximately 680 apartments were sold - representing about 65% of their total supply together . That being said, the data shows that alongside projects that have been completed, and which have been sold in full or a large part, each of the companies is facing relatively weak sales in completed projects, or which are in relatively advanced stages of construction.

In terms of current scope, the prominent player among the companies operating in Harish is Hanan Moore, controlled by Chairman Hanan Moore and CEO Avi Maor, with close to 570 apartments in four projects whose construction has been completed or is in various stages, in addition to planning projects with close to 160 Additional apartments. Next to it is Africa Residential, which is carrying out three projects with about 250 apartments; Ashdar, of the Ashtrom Group, carries out and markets five projects in which more than 120 apartments and Demri, under the control of CEO Yigal Demri, which markets two projects that together comprise about 110 apartments.

Plowing real estate projects

Plowing real estate projects (Photo: Globes, PR)

All companies have shuffled sales projects

As mentioned, the companies' data do not indicate overall transverse difficulties, and for example, Hanan Moore shows sales rates of almost 100% in two completed projects - and of the 280 apartments they include together, only five remain unsold. However, in one of its projects, the company is selling only eight apartments out of 109 that includes the project (about 7% of the total project), while the project is already at a completion rate of 36%. On this project, Hanan Moore notes that there is "a bias of the data in relation to real sales".

According to Hanan Moore himself, "What is happening today in the plow was predictable and well-known, with a market rate of sales with a supply of lots of players," emphasizing that "our sales are done exactly according to plans." He said, "We have sold close to 20 apartments by the end of the third quarter of 2019 - an average of two apartments a month, which is similar to regular project sales during a period of high supply and demand for new apartments that are in place, but not intensely, because the city is developing."

Regarding Harish's future, Moore adds, "Today there is the greatest opportunity, due to the city's accelerated development, and increased construction in recent years. In the next few years, there will be a decrease in construction volumes over previous years. In my opinion, this is the last time to buy an apartment in the Gedera-Hadera area, At a cost of about NIS 10-11,000 per square meter of housing, because in my estimation it is facing a rise in prices. "

In total, African residential plowing houses include 11 buildings and, according to the company, in recent years it sells an average of 50 apartments a year.

A major stock market player currently operating in Harish is Shapir Engineering Construction and Infrastructure, whose updated data on its activities in the locality are missing from the quarterly reports. In early 2018, Shapir began construction of the "Betsuva" neighborhood in Harish, a huge project that is expected to include about 1,500 apartments - close to 700 of which are part of the "Price for the Housing" project, alongside commercial areas and educational institutions, whose sales according to Shapir are expected to total about $ 1.15 billion. NIS.

Shapiro, controlled by the four Shapiro brothers, as mentioned, does not specify project progress in the quarterly reports, after the 2018 summaries, released last March, updated the project's completion rate of less than 3%. Another stock exchange operating in Harish and does not specify the status of its projects in the quarterly reports is Housing and Construction. At the end of 2018, the company under the control of Nati Seydoff presented one plowing project with less than 40 apartments, which it started shortly before the report was published, and two projects in the construction phase of about 50% -60%, which together comprise close to 160 apartments, of which sold up to At that time only 31 - less than 20%.

About 3,000 apartments in the city are already occupied

The Ministry of Housing began marketing Harish about seven years ago, as a low-cost alternative to housing with relatively low apartment prices, and today the city is an ever-expanding settlement. The city is located in the Haifa district not far from Iron Interchange, where Route 6 connects to Route 65, but access from the city to these two major transport routes is long and relatively cumbersome.

Harish's accelerated development poses a host of challenges and quite a few problems, especially in infrastructure and transportation, and just about a year ago, Transportation Minister Keren Turner said that "Harish is a cry for generations because the city was designed without proper transportation infrastructure." The number of residents is recorded on the basis of the large scale of construction carried out there, and currently, as far as is known, there are already about 3,000 inhabited apartments, plus several thousand apartments under construction.

As expected, in official references, owners and company executives are unequivocally optimistic about the state of the plow, but not to mention, some executives operating in the locality indicate that plow sales activity in the past year is not always as straightforward as reflected in newspaper headlines and data that indicate an increase in sales. The challenges, according to those managers, are related to the extensive supply of apartments that are plowed after several years of accelerated construction, to the mix of apartments offered in projects, as well as to their marketing schedule.

This past year, according to one of those executives, "a few significant cost-per-plan projects (mainly from Shafir Engineering, L.A.) have matured, and their massive campaigns have come at the expense of conventional projects - which has affected demand levels for other projects, And led to the decision by some companies to wait with the marketing of new projects that are "in the pipeline."

However, he stresses, "It can be seen that the situation has changed in recent months. If in May-June the market fell a bit because of this, then by August a revival could be detected and in September we began to feel an increase in demand. If we were a little more conservative earlier this year, because of some slowdowns, now we can move forward again with marketing what we have in the pipeline. "

Regarding the rate of sales recorded by the companies, one of the managers also attributes a relative weakness in some of the projects to the proposed apartment mix. "If you take a building that has several garden apartments, 5-room apartments, and also one or two penthouses, these are more expensive apartments and are usually sold towards the population because their buyers are usually low-cost housing sellers. More". On the other hand, he says, "The sale of 4-room apartments, which are usually the standard here, is being done at a higher rate, and according to apartments of this type we no longer have supply, so we are working to open more marketing projects."

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The city you come to just because of Price / Eric Mirowski

Also in the fourth quarter of the year, Harish continues to gallop with the increased sale of new apartments. Since October, 270 deals have been registered in the city, and another hand is slanted. After a few years of faltering, the new city comes to life in terms of selling new apartments. Can Harish also be one of the leading cities in the sale of new apartments, and also that developers sometimes find it difficult to market apartments, as reflected in the financial statements of the construction companies? Probably so. This is one of the main cities where the price for a "lottery" lottery is held, and also one of the cities where there is a substantial supply of new apartments in the free market, so that there is a strong struggle for the money of the home buyers, usually young couples.

As a rule, Harish is the creation of a city from where: A large complex intended to become an ultra-Orthodox city in the hills overlooking East Wadi Ara, as a result of the social protest and petition to the High Court for the general public, has the greatest advantage for the home buyers is the cheap prices of the apartments. Usually at prices of NIS 1-1.1 million, 5-room apartments are sold for NIS 1.2-1.3 million and those who want to flaunt penthouses will sail up to NIS 1.7 million, prices in the center of the country can only dream of.

At the same time as the free market, there were about 3,500 apartments being built in the city, which were built as part of the "Price per Housing". In recent months, many discount deals have been seen in the city - for example, 4-room apartments are sold for about NIS 800,000 and 5-room apartments are for NIS 1 million. The direct result of this, of course, is the increase in demand from free market apartments in the direction of government operations.

As usual, in places where there is a large supply of flats in the context of the price of the buyer, the developers who operate in the free market show greater creativity in order to entice buyers to reach them. For example, larger, better-equipped apartments and payment terms are preferable. The question, how far can it work in a city like Harish, to which people come only because of the price.

Source: walla

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