Rich foreigners have apparently stopped buying luxury apartments in Tel Aviv. Henry Taic's planned David Promenade Residences on the city's seafront Hayarkon Street has had no sales since its celebratory launch four months ago. The developer said that it was in contact with 15 potential buyers for large apartments with sea views.
The asking price for the apartments, which range in size from 230 square meters to 320 square meters, is $3.5-4.5 million. This price is as much as $14,000, or NIS 53,000, per square meter, less than price announced at the launch of NIS 55,000-70,000 per square meter.
The David Promenade Residences will comprise two connected 25-storey high-rises with 60-70 apartments each adjacent to the Opera Tower. The estimated investment in the project is NIS 750 million, including the cost of the land.
Taic owns the David Intercontinental Hotel, the Meridien Dead Sea Hotel, and Grand Court Hotel in Jerusalem.
Sales at other luxury Tel Aviv projects also appear to be flagging. The Meier on Rothschild project of Berggruen Residential Ltd. (TASE:BRGN.B1) has sold 32 of its 91 apartments since sales were launched three years ago.
However, the sales manager of FAIRE Fund's 96 Hayarkon Street project said, "The luxury market is alive and kicking." Prices in the project are $18,000-22,000 per square meter, and he attributed Taic's troubles to his focus on a very narrow niche of super-rich clientele.
Published by Globes [online], Israel business news - www.globes-online.com - on June 17, 2010
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