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Lieberman estimates: "Rising housing prices to 5-6% in 2022 will be considered a great achievement"
The Minister of Finance referred to housing prices at the Eilat Real Estate Appraisers Conference and estimated that this year will end with an 11% increase in prices.
"When I compare housing prices to prices around the world we are at the bottom of the list compared to Sweden and the US"
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Lieberman Avigdor
David Wertheim
Monday, 15 November 2021, 11:55 Updated: 12:10
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The Minister of Finance, Lieberman, was hosted this morning (Monday) at a conference of the Israel Real Estate Appraisers' Chamber held at the Dan Eilat Hotel and addressed the issue of housing prices. "I expect that eventually this year there will be a rise of about 11% while next year housing prices will rise by 5-6%. When I compare housing prices to world prices we are at the bottom of the list compared to Sweden and the US." There are several components in Israel that affect prices: The first component is prime interest and this is the big impetus for the amount of mortgages that since the days of the Second Temple have not taken so many mortgages and as long as the prime is 0 it will not change. The second component is the insane rise due to the corona in maritime transport prices, the price jumped by 776%. Steel prices also jumped by 30%. "
"What is important this year is that we break all records in marketing, since 2000 there has been no such thing. We stand at over 180,000 marketing and over 55,000 construction starts. It is far from the goal but I believe that in 3-4 years we will close the gaps. It is estimated that through the OTMAL we will succeed, today mayors are queuing up to put plans in the OTMAL.
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(Photo: Flash 90, Jonathan Zindel)
The finance minister was asked at the conference why he is not talking about falling housing prices but only about moderation and replied: "We must be realistic, given what is happening with interest rates, maritime transport prices, steel prices, if we moderate the price increase to 5-6% in 2022 it "It will be considered a great achievement. In the end, we need to create such conditions that a young couple can buy an apartment. We need much more supply, create conditions that a couple who takes out a mortgage pays for an apartment only a quarter of their income and not half."
Lieberman added that "We have also increased the supply of public housing, which we have not done here for decades, we have allocated 1,700 apartments in the free market and a few more housing rates through the Jewish Agency. We will return 6,000 housing units to public stock. Regarding the Air bnb apartments that were decided in the government housing plan to ban them, Lieberman said "in 2019 there were 13,000 such activity units. To own such apartments does not make sense, they were built as residential apartments and thus should remain not in favor of tourism,It will also fill the rental housing market. "
Lieberman referred to the high cost of living and exorbitant food prices and claimed, "We can not reach a situation where dairy products in Israel are 75% more expensive in the rest of the OECD countries. There is no justification for such basic products to rise much more than Europe. The brokerage gaps between farmers and marketing chains and we will soon publish our conclusions. The marketing chains have made a big buck from the Corona outbreak. Look at their shares, I wish for everyone. You have to consider the public. Some price increases they have to absorb. "Next, two assistance packages to deal with the cost of living. One for consumers and the other for some exporters through tax rebates."
Towards the end of the interview with him, Lieberman was asked by the appraisers what about the decision to raise the purchase tax, "Lieberman was surprised when he said that today he expects the legislative process of raising the purchase tax from 5% to 8% to end."
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