A three-room apartment costs nearly NIS 2 million.
Classified ads site Homeless shows that while prices for three, four, and five-room apartments in Tel Aviv and Rishon LeZion are rising, prices are falling in Ramat Gan, Givatayim, and Netanya.
Prices for three-room apartments in Tel Aviv reached NIS 1.99 million in June, up from NIS 1.92 million in January, when the Globes-Homeless Index was launched. Prices for three-room apartments in Rishon LeZion rose to NIS 1.07 million from NIS 962,000 over the same period.
Given the low number of housing starts, the only way the rise in home prices will change will apparently come from pressure on sellers of second-hand apartments caused by low demand persuading sellers to compromise. At the moment, however, with interest rates at historic lows for both mortgage and bond instruments, there is no incentive for homeowners to sell.
Published by Globes [online], Israel business news - www.globes-online.com - on July 12, 2010
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