Housing Ministry to issue tenders to developers offering lowest price per unit
Posted on 06. May, 2010 by Buy-It In Israel Staff in Israel Real Estate
©iStockphoto.com/Amit Erez
The Israeli Housing and Construction Ministry together with the Israel Land Administration has issued a tender for land for the construction of 3,000 new homes in Israel, across 18 cities and yishuvim, in a continued effort to lower spiraling Israel real estate prices by finding ways to help the the supply shortage in housing in Israel.
In the current tender, the Housing and Construction Ministry is marketing land located to a large part in demand areas. Out of the 3,000 apartments, 500 units for the construction in the center of the country, will be won by the contractor or developer submitting the lowest final price per apartment unit. The policy measure was introduced to increase the supply of affordable housing and enable young couples to purchase an apartment.
Despite a number of land tenders issued by the Housing and Construction Ministry in recent months aimed at bringing down inflated property prices, the most recent figures show that prices have continued to soar. In the past eight months, the Housing and Construction Ministry has put on the market plots for 21,600 apartment units to boost the supply of unsold apartments which has fallen to a low of less than 13,000 units nationwide. One of the reasons for the failed efforts by the Housing and Construction Ministry was that much of the land the ministry put on the market to advance its efforts lay outside high-demand areas and were less popular to the prospect of flats in metropolitan Tel Aviv.
In demand areas, a land tender for the construction of a total of 1,890 apartment units is being issued, including 86 units in Bat Yam; 320 units in Kadima Zoran south of Netanya; 160 units in Ness Ziona to the south of Tel Aviv; 336 units in Tzur Natan in western Samaria; and 654 units in the south of Yavne. In the religious city of Elad located between Rosh Ha’ayin and Shoham, a land tender for the construction of a total of 168 apartments will be issued to the Israel real estate developer offering the lowest price per unit.
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