In September, 254 apartments were purchased by foreign residents—the highest monthly figure since July 2022. Notably, 87 of these purchases were in Beit Shemesh, surpassing Jerusalem, which traditionally leads in foreign buyer interest. This surge reflects a significant 119% increase in foreign purchases compared to last year. Meanwhile, Afula and Lod saw a spike in transactions following the removal of sales restrictions on large numbers of “Price for Residents” units.
By Dror Nir Kastel, Nadlan Center
September recorded the highest number of purchases by foreign residents since July 2022, according to data released today (Wednesday) by the chief economist at the Ministry of Finance. This sector purchased a total of 254 apartments. Beit Shemesh stood out with 87 apartments sold to foreign residents, surpassing Jerusalem, which typically leads in this sector. This marks a sharp 119% increase in foreign purchases compared to the previous year.
An analysis of the findings in Beit Shemesh reveals that this unusually high level of foreign buyers is due to a small number of purchasing groups (not buyer groups, but those purchasing from a developer via a representative). While Jerusalem has shown a steady increase in foreign purchases since the low in October, it is too early to determine if the sharp rise in Beit Shemesh in September will persist.
In September 2024, 8,180 apartments were sold, a 39% increase compared to September last year, mainly due to the timing of the Jewish holidays. Adjusted for the number of workdays, average daily sales increased by only 1% from last year. This is a 9% increase compared to August, with August affected by the Tisha B’Av holiday.
In the open market (excluding subsidized apartments), 7,418 apartments were sold, a 42% increase compared to September 2023. The daily sales average was up by 3.5%, and this also represents a 9% increase compared to the previous month.
Contractors sold 3,452 new apartments in September, a 46% increase from last year and 3% more than the previous month. The average sales rate was 6% higher than in September last year. Excluding government-subsidized apartments, contractors sold 2,690 units, marking a 58.2% increase from September last year and a slight 1.5% rise from the previous month. The daily sales average increased by 15% compared to September last year.
In the second-hand market, 4,728 transactions occurred, a 35% increase from the previous year, though the daily average sales were 2% lower than in September. This reflects a 13.6% increase from the previous month. Investor purchases rose by 54%, totaling 1,382 apartments, with their share in all transactions increasing by 1.6 percentage points to 17%. The daily average sales for investors increased by 12%, and the total rose by 13% from the previous month.
The Ministry of Finance also examined the impact of lifting restrictions on “Price for Resident” sales in Afula and Lod. Significant activity was recorded in areas where sales restrictions on “Price for Resident” apartments were lifted, like Lod and Afula, leading to increased sales and price changes.
A year and nine months after lifting the sale restriction in Afula, a quarter of the apartments purchased in the project have been sold, a sharp nine percentage point increase compared to six months ago. In Lod, where the restriction was lifted three months after Afula, a fifth of the project’s apartments were sold by September of this year. The capital gain from these sales allowed buyers to purchase more expensive apartments than the “Price for Resident” apartments they sold.
Thus, in Lod, the average price of the apartments they bought was 2.76 million NIS, 45% higher than that of the apartments they sold, a monetary difference of 858,000 NIS. In Afula, the average price of the replacement apartment was 2.2 million NIS, 53% higher than the price of the apartment they sold, a financial difference of 764,000 NIS.
Investor sales in September totaled 1,480 apartments, a 26% increase compared to September last year, though seven percentage points lower than the increase in total second-hand transactions and a 17% rise from the previous month. Adjusted for workdays, there was an 8% decrease in the daily average sales of investors compared to last year.
First-time home purchases in September amounted to 4,841 apartments, including government-subsidized units, a 40% increase from September last year. Adjusted for workdays, these purchases grew by a modest 2%. Compared to the previous month, there was a 9% increase in total purchases by first-time homebuyers.
Home upgraders purchased 1,956 apartments in September, a 28% increase from last year. Adjusted for workdays, this represents a 7% decrease in daily purchases, marking the only segment with a decline in this calculation. There was a modest 5% increase in home upgrader purchases compared to the previous month.
