Construction companies and contractors have begun offering discounts of between 4% and 6% to apartment purchasers in various locations around the country. The discounts are the result of a drop in demand for apartments, and from an ever-increasing supply of apartments in advanced stages of construction. Some of outstanding examples from recent days:
The Davidov-Katz group, now constructing 368 apartments on the grounds of the former Ata factory at Kiryat Ata, has decided to give a 4% discount to IDF persons. To date, the company has sold only 140 units.
The Dankner group has announced a 6% discount for high school teachers and El-Al workers, on apartments being sold in Rishon Lezion, Modi'in and other locations.
The Ginot Leah company, owned by three private contractors, is giving a 6% discount on luxury apartments in a building at 20 Leah Street, Neot Afeka B, Tel Aviv.
Over the weekend, the contractors sold a four room apartment to a senior official from the Israel Broadcast Authority for $398,000 including VAT and parking instead of the previous asking price of $420,000.
Several companies gave out discounts or special offers at the National Apartment Exhibition, held last week at the Tel Aviv Fairgrounds. One company promised a car to every buyer, others offered no-interest loans of NIS 100,000 to each purchaser. In spite of it all, most companies reported sales were weak.