On the way to a further rise in housing prices?
"Real Estate Today" has learned that the contractors are considering new steps following the amendment to the Sale Law promoted by the Minister of Construction and Housing, Zeev Elkin - after learning that he intends to apply it not only to new deals but also to apartments already sold to buyers.
Among the contractors' threats: raising housing prices by no less than 10% and extending occupancy dates in order to avoid compensation for delays.
The construction companies were shocked to discover that Minister Elkin intends to raise the issue of applying the law retroactively in the Finance Committee.
This is despite the fact that this is not mentioned in the bill he submitted.
Meaning: Companies that have already sold and made their profit estimates could, according to the contractors, be fatally hit by demands that were not taken into account ahead of time.
The Builders of the Land Contractors Association also adds that if the move is indeed promoted, this will lead to a petition to the High Court.
The contractors also learned that the minister's goal is to raise the proposal for a second and third reading in the coming weeks in the Knesset.
"Populist regulation and misleading the public"
Raul Srugo, president of the Builders Association of Builders Association, told Real Estate Today: "The current government is making the same mistakes of previous governments and instead of formulating a comprehensive plan to deal with the failures that raise prices, it chooses to produce populist regulation, misleading the public, as if She's going to save him money.
I will mention that in 2021 the prices of new dwellings rose by about 18% and the index of construction inputs rose by only 6% - did apartment buyers really lose or vice versa?
I do not understand why the way for this government to choose tools that will not solve anything. "
Another senior member of the Contractors' Association who spoke with the system also spoke out strongly against the amendment to the law: "When reading these sales regulations, it is hard to believe that such regulations can be approved in a free, democratic and liberal state.
It will also not be possible in terms of business risk to sell apartments 'on paper' in Israel.
The pricing of the apartment and the date of its delivery can be determined only at the end of construction and receipt of a certificate of completion.
"Selling an apartment 'on paper' if the amendment to the law and regulations is accepted, imposes all the risks disproportionately and unreasonably on the seller and without the seller and the buyer being allowed to agree otherwise."
The senior contractor added: "This is the destruction of the housing market as we know it to this day. If the law and regulations are approved, I also anticipate serious problems with bank lending to lending banks, which are defined as" risk averse "and will tighten financing and financial lending options for projects. A world with dire meanings for the residential construction industry in Israel. "
Elkin: "Not all campaigns will help you"
Housing Minister Elkin, for his part, did not remain obligated.
In response to the threat of the contractors, he said: "The amendment to the Sale Law is excellent. Not all the campaigns you do against the law will help you. No matter how much we sell you the land - you will sell the apartments at the most expensive price, so you have nothing to complain about."
As we recently published in "Real Estate Today", Minister Elkin is promoting an amendment to the Sale Law which means a potential reduction of hundreds of thousands of shekels for the buying public. Among the prominent issues in the proposed amendment On the part of the contractor and the prohibition of drinking of the legal expenses of the contractors on the buyers.
It should be noted that in parallel with the debates to be held in the Knesset this week on the amendment to the Sale Law, the Rami Council will approve the restriction of linkage in state tenders to a target price immediately, and in fact, any developer or contractor who submits tenders after Rami Council approval.
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