Tel Aviv home prices down 13% in Q4

The average Israeli home price fell 1% from NIS 1.158 million in the third quarter of 2012 to NIS 1.146 million in the fourth quarter.

Prices for large apartments in Tel Aviv fell by almost 13% in the fourth quarter of 2012, compared with the preceding quarter, the largest drop in any region, according to the regional breakdown of home prices by the Central Bureau of Statistics.

After the Ministry of Finance reported last week that home sales in December 2012 returned to their peak of June 2009, the Central Bureau of Statistics reported yesterday that prices rose by 1% in December, after rising 1.1% in November and 0.8% in October.

Despite the steady rise in home prices, the average home price in some areas fell. Nationwide, the average home price fell by 1% from NIS 1.158 million in the third quarter of 2012 to NIS 1.146 million in the fourth quarter. However, the average home price in the fourth quarter was higher than the average of NIS 1.097 million in the corresponding quarter of 2011.

Within the general trend there was wide variation in home prices, depending on area and type of apartment. In the Tel Aviv area, prices for large apartments were 12.7% lower in the fourth quarter than in the preceding quarter and prices for all apartments fell by 5.4%.

In the Sharon, the average price of a small apartment (1.5-2 rooms) fell by 6.6% from NIS 767,000 in the third quarter to NIS 716,000 in the fourth quarter. As in Tel Aviv, in the Sharon, the prices for all apartments fell in the fourth quarter from the preceding quarter (except for 3.5-4 room apartments, which rose by a negligible 0.2%); the average apartment price fell by 2.5%.

The largest rise in apartment prices was for small apartments (1.5-2 rooms) in Jerusalem, which rose by 7.4% from the third quarter to the fourth quarter. In Haifa, prices for small apartments rose by 8.3%. Prices for small apartments rose by 10.2% in the northern region.

Rents also rose nationwide. The Central Bureau of Statistics reports that the average rent rose by 1.2% in the fourth quarter compared with the third quarter. The largest increase in rents was a 5.7% rise for 4.5-5 room apartments in Haifa and the Krayot, from the third quarter to the fourth quarter. Rents for large apartments in the Dan region rose by 2.5%, and rents for 3.5-4 room apartments in the north rose by 2.3%.

Published by Globes [online], Israel business news - www.globes-online.com - on February 18, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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