More than 1,600 apartment purchase transactions were signed in Jerusalem between August and October, leading both the new and second-hand apartment markets, according to CBS transaction data. Around 70,000 new apartments are for sale, approximately 8,500 in Tel Aviv.
By Doron Breitman, Nadlan Center
In August-October, 21,830 apartments were sold, according to a CBS (Central Bureau of Statistics) report released today (Sunday). This represents a 35.6% increase compared to the same period last year and an 18.9% decrease compared to the previous three months (May-July). It should be noted that the October 2023 Swords of Iron war slowed apartment sales that month.
About 9,500 of the sold apartments (43.5% of all apartments) were new apartments, reflecting a 43.2% increase compared to the same period last year, with 21.1% sold under government subsidy. Meanwhile, 12,340 apartments were second-hand, marking a 30.3% increase compared to last year.
In October 2024 alone, 5,110 apartments were sold, a 41.7% decrease compared to September, primarily due to the High Holidays during October. This marks a significant increase compared to October last year, when the war broke out, and a figure similar to October 2022. Of the total apartments sold in October, 2,230 were new apartments (a 39.9% decrease compared to September), with 22.6% sold under government subsidy. Additionally, 2,880 second-hand apartments were sold during the month (a 43% decrease compared to September).
Data further reveals that the Central District leads with 23.4% of all apartments sold between August and October 2024. This district accounted for about a quarter of new apartments (24.0%) and a quarter of second-hand apartments (22.9%). The Southern District follows with 22.2% of total sales: 24.3% of new apartments and 20.6% of second-hand apartments. It is worth noting a 20.3% decrease in new apartment sales compared to the previous three months, with a 44.7% drop in the Northern District and a 31.9% decline in Tel Aviv. Similarly, second-hand apartment sales fell by 17.8% across all districts, with the Northern District seeing a particularly sharp drop of 24.9%.
Jerusalem leads in second-hand apartment sales
Regarding sales distribution by locality, Jerusalem tops the list of new apartment sales with 773 units sold between August and October, a 4.6% decrease compared to the previous three months. Tel Aviv follows with 693 apartments sold (a 23.3% decrease), Ofakim with 575 (an 11.9% increase), Haifa with 335 (a 16.3% increase), and Netivot rounding out the top five with 318 apartments sold (an 8.6% decrease).
Notable increases compared to the previous quarter include Be’er Ya’akov, which saw a 102% rise; Elad, with a 365.9% increase; and Rehovot, with a 45.5% jump. Significant declines in new apartment sales were recorded in Akko (a 48.4% decrease), Rishon LeZion (a 40.4% decrease), and Lod (a 40.2% decrease).
Jerusalem also leads in second-hand apartment sales with 833 transactions (a 22.6% decrease compared to the previous three months). Haifa follows with 830 transactions (a 14.9% decrease), Be’er Sheva with 717 transactions (a 20.9% decrease), Tel Aviv with 488 transactions (a 13.6% decrease), and Ashkelon with 415 transactions (a 7.8% decrease). Lod recorded a 24.5% increase in second-hand transactions, while Bnei Brak and Holon saw significant declines of 28.3% and 19.7%, respectively.
At the end of October 2024, the inventory of new apartments available for sale stood at approximately 69,730 units, with the number of months of supply (the time it would take to sell all available apartments) calculated at 19.6 months. Compared to October 2023, there was a 13.2% increase in available inventory, while compared to the previous month (September 2024), there was no significant change. Of the unsold apartments, 31.4% are in the Tel Aviv District (21,920 apartments), 24.7% in the Central District (17,200 apartments), and 14% in the Southern District (9,760 apartments). Compared to June 2023, the inventory of unsold apartments grew by 18.0%, but the months of supply decreased by 5.1 months (from 23.5 months).
In major cities with over 100,000 residents, Tel Aviv-Jaffa leads with approximately 8,560 unsold apartments, followed by Jerusalem with 6,181, Bat Yam with 4,196, Netanya with 3,576, and Ramat Gan with 3,037.
