Property prices to continue to rise
Posted on 15. Aug, 2010 by Buy-It In Israel Staff in Israel Real Estate
Despite increased efforts by the government to stem the sharp surge in Israel real estate prices they have continued to rise over the past year. The trend is expected to continue over the next year in light of the short supply of new apartments for sale.
Within a year, prices of four-room apartments in Israel increased by an average of 17.2 percent between June 2009 and June 2010, according to a report published this week by the government assessor in Israel’s Justice Ministry. Most of the increases occurred in the last six months of 2009. In the three months from April to June this year, prices rose by an average of 3.2 percent from the previous three months.
The report, which was based on a sample of 4,700 purchases in 16 cities in the first and second quarters of 2010, showed that the biggest increase was found in the Tel Aviv area, where the average price of four-room apartments jumped by 32 percent from June last year to June this year. In money terms a four-room apartment in Tel Aviv was sold for an average of NIS 1.76 million in June last year compared with NIS 2.31 million in June this year. In the second quarter of this year, prices of four-room apartments rose by 2 percent from the previous quarter.
As prices in the central region of the country skyrocketed many homebuyers ventured outside the center to the south and north of the country pushing up prices in these areas over the past year. After Tel Aviv, Beersheva, was the city with the highest increase in home prices over the past year. The average price of a four-room apartment in Beersheva was up by 23 percent over the reported one-year period during which prices rose from NIS 508,000 in June 2009 to NIS 626,000 in June 2010. In the second quarter of this year prices increased by 3 percent from the previous quarter.
In Haifa, in the north of the country, the average price of a four-room apartment rose by 20 percent year-on-year from NIS 823,000 in June last year to NIS 985,000 this June. In the three months to June this year, home prices in Haifa increased by 8 percent from the previous quarter.
Four-room apartments in Jerusalem, were sold for an average price of NIS 1.62 million in June this year compared with NIS 1.35 million in June last year, representing a rise of 19 percent.
In the area of Herzliya, the average price of a four-room apartment increased by 14 percent, from NIS 1.44 million in June last year to NIS 1.65 million in June this year.
The cities which saw the lowest increases in Israel real estate prices over the past year were Eilat and Holon, where prices rose by a mere 3 percent and 6 percent respectively.
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