A record of six years in the purchase of apartments in the free market, without a price per occupant. This is according to a new report from the Ministry of Finance published yesterday.
According to the survey, published by Chief Economist Shira Greenberg, in the first quarter of this year (January-March), about 31,000 apartments were purchased in the free market - the highest figure since the quarter. The second of 2015, which stood in the shadow of early investors' acquisitions before taxing them.
Compared to the corresponding quarter in 2019, this is an increase of 29%, and a more moderate increase of 8% compared to the last quarter of 2020.
About a year ago, the purchase tax for second home buyers was reduced from 8% to 5% - a move that brought investors back to the real estate game. As a result, investors are primarily responsible for the increase in transactions - with a sharp increase of 85% compared to the corresponding quarter in 2019. These purchases in the first quarter of this year stood at 8,600 apartments - the highest number since the record in the second quarter of 2015.
The purchases of foreign residents in Israel in the first quarter of the year amounted to only 333 apartments, a decrease of 5 percent compared to the corresponding quarter in 2019. The leader, by a large margin, is Jerusalem
The share of investors in total transactions in the first quarter of the year was close to 10% - an increase of 6.6 percentage points compared to the first quarter of 2019. Most investors are public sector employees, including permanent employees and the financial sector. Investor salary levels this year are high compared to those who purchased an investment apartment last year.
Investor sales also grew to 6,600 apartments - a 24% jump compared to the same quarter in 2019 and the highest level since the first quarter of 2017.
The young couples are also storming the free real estate market. Their purchases in the first quarter amounted to 11,500 apartments Here, too, this is the highest amount in the last six years, before the start of sales to "price per occupant" winners. Compared to the first quarter of 2019, this is an increase of 15%, and of 4% compared to the end of 2020.
In contrast to the second half of last year, the market segment that led the increase in purchases by young couples in the free market was that of second-hand apartments. Purchases of housing improvers in the first quarter increased by 24% compared to the beginning of 2019 and recorded the highest level of these purchases at least since the beginning of the previous decade.
The purchases of foreign residents in Israel in the first quarter of the year amounted to only 333 apartments, a decrease of 5% compared to the corresponding quarter in 2019. Against the background of this figure, the Jerusalem area stands out with a sharp increase of about 60% in these purchases, which were fully offset due to sharp declines in the Tel Aviv and Netanya areas.