Real Estate
In the country
Sea of trouble: the secret cause of rising apartment prices
A fivefold increase in the prices of sea freight from China within a year complicates the contractors and makes the apartments more expensive.
China is responsible for the vast majority of housing accessories in Israel.
This rise in price comes in addition to the sharp rise in the price of iron
Tags
transport
Building
Walla!
Real Estate
Thursday, 05 August 2021, 08:39 Updated: 09:40
Share on Facebook
Share on WhatsApp
Share on general
Share on general
Share on Twitter
Share on Email
0 comments
The reason for the increase is disruptions in the functioning of the ports that were created due to the closures and restrictions that the corona plague brought with it.
Meanwhile, some of the transport lines were canceled, and a number of transport companies collapsed in a way that reduced the supply in the field.
The latest housing price index indicated a 7.2% rise in prices, and there is currently no end in sight to rising prices.
The problem of land supply and the shortage of apartments are a significant part of the problem, but alongside them there has also been a significant increase in construction costs of close to 4% per year.
Various factors in the construction industry attribute a significant part of the increase in the prices of sea freight, which have risen dramatically in the past year.
This is because of the disturbances in the functioning of the ports that were created due to the closures and restrictions that the corona plague brought with it.
Meanwhile, some of the transport lines were canceled, and a number of transport companies collapsed in a way that reduced the supply in the field.
For example, transportation costs from China, from which the Israeli construction industry imports a significant portion of the iron it uses, have skyrocketed fivefold, from a level of about $ 2,000 per container a year ago, to a level of $ 8,000 to $ 10,000 today.
This rise in price comes in addition to the sharp rise in the price of iron.
In addition, China is also responsible for the vast majority of finishing accessories - porcelain and sanitary ware for bathrooms and toilets, kitchens, and more.
More on Walla!
How do you bring investors to Israel?
Try to knock them less
To the full article
The supply of companies is small.
Cargo ship (Photo: AP)
Promote Parking Facilities, the sole importer of German facilities giant Wohr, some of whose facilities are manufactured in factories in India, updates that shipping costs have skyrocketed within a year from about $ 3,000 per container leaving Bombay Port a year ago, to about $ 16-17,000 today.
Together with the effect of the meteoric rise in iron prices, the company reports a rise in the price of its products by only 20% in the last year, and a doubling of the price of facilities over the past 5 years.
Doubling the price of facilities over the last 5 years.
Parking Promote (Photo: PR)
"Rising prices will continue"
"Crazy lesson."
Ido Fadlon (Photo: Ofir Harel)
According to Udi Dresner, CEO of the company, the increase in inputs affects the way companies perform: "Most companies prefer to place orders as early as possible on the assumption that price increases will continue, and this is also my recommendation to contractors - who can order early. On the other hand, we tend not to sign transactions today long before the actual installation date, with the understanding that while it will pass until the installation date, there may be another increase in price which will make the transaction unprofitable for us. "
Ido Fadlon, owner and co-CEO of Shponder-Fadlon, says that the increase in maritime transportation has led to a sharp increase in most raw materials, and especially in finishing accessories: "Ceramics, sanitary ware, kitchens, glass, air conditioning systems, pumps, generators, everything comes in transportation Yamit, as well as the few accessories made in Israel, are made from raw materials that come from abroad.
"The latest construction input index jumped 0.6% a month, which is a crazy rate, and I have no doubt that the jump in maritime transportation costs has a significant part to play."
Share on Facebook
Share on WhatsApp
Share on general
Share on general
Share on Twitter
Share on Email
0 comments