It does not happen every day that two official government bodies go out in exchange of accusations against each other in public.
However, it seems that the burning issue of soaring housing prices in Israel this time managed to "take out of their peace" the Bank of Israel and the Israel Land Authority, which earlier this week pointed one finger at the year over who is responsible for rising housing prices in Israel in recent years.
Yesterday (Monday), the Bank of Israel published the "Financial Stability Report for the Second Half of 2021", during which the Bank stated that "the increase in land prices in RMI tenders may act to increase housing prices in the coming years."
The Rami (Israel Land Authority), however, did not remain indebted and sent a response to the Bank of Israel in the following language: "The Israel Land Authority respects the Central Bank's institution, the Bank of Israel, and will study the report.
"On the face of it, the central bank ignores in a report published by the low interest rate default, for which the bank is responsible, which is the number one cause of rising housing prices."
Rami added: "It should be remembered that the past year was a record year in the marketing of housing units throughout the country, in which over 100,000 housing units were marketed. The Authority will make every effort to increase the markets to larger areas Of young couples as part of the "Target Price. Program. It should be remembered that Rami operates in accordance with the law in the method of public tenders."
Advocate Dudu Kochman, secretary general of the Agricultural Union, responded to the financial stability report, saying that "this is another report which implies that the administration is not doing its job and is a major factor in rising cost of living and rising housing prices."
According to him, "RMI creates manipulations that cause prices to rise, give guidelines for determining the rate, such as those that contradict the rules of appraisal work and those that cause land prices to rise, which inevitably leads to a rise in housing prices."
As you may recall, about three months ago it was reported in "Real Estate Today" that the Minister of Construction and Housing himself, Zeev Elkin, issued an unusual call to contractor developers "not to approach RMI tenders at such price levels", implying the high land prices reflected in the authority's tenders.
These are the words of Minister Elkin at the meeting of the "Club of the Century" from "Real Estate Today", in front of the heads of the largest construction companies in the economy.
The minister added at the same time that "we need to think twice before approaching tenders, especially target price tenders ... The peak of marketing in 2021, which will reach 85,000 housing units, and plans for a similar number in 2022, as well as the start of a target price project, will not "Any price for the land is worthwhile and relevant. I suggest and ask the contractors to think twice before writing a number in the land tenders."
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