Jerusalem witnessed a miracle: the Ligad and Mizrahi
companies managed, within one month, to sell 67 out of
the 86 luxury apartments they had put up for sale in the
Beit Hakerem neighbourhood. Considering the very bad
slump in the luxury apartments market, especially in
Jerusalem, this is a mind-boggling success.
Gil Schuldenfrei (Ligad) and Roni Mizrahi: "All
compliments should be directed to Haim Evron, the
marketing agent, who succeeded beyond all expectations
and has made the project an economic success".
This is a first exposure for 40-year-old Evron, a
leading marketing man in Jerusalem. Regarding his success
in Beit Hakerem, Evron comments: "Ligad and Mizrahi do
not know the Jerusalem market. I advised them to modify
the original plan and build more small apartments, using
27 different models.
"People still have money today, and they are looking
for a good deal. High standard construction, above the
usual Jerusalem norm, includes marble flooring throughout
the apartment, and remote control parking. From the
outset, we fixed reasonable prices, based on the
relatively low price paid for the land by Ligad, of
$78,000 per apartment. Marketing policy stresses the
high standard technical specifications, and we also
allowed 3%-5% discounts, for a fixed period of time. I
ruled that an effort should be made to meet purchasers
half-way, to create a good atmosphere, and not argue over
marginal issues. If someone requests ceramic tiling in
the bathroom or a double sink, we give it free of charge.
The fact is, it worked".
"Globes": Who are the purchasers?"
Evron: "80% are residents of Beit Hakerem and the
surroundings, the others are from Tel-Aviv, or foreign
investors from the United States, Venezuela and Canada.
The most outstanding purchaser is a construction
companies adviser from Jerusalem, who bought a 7-room
apartment for $735,000 and another 2-room apartment for
investment at $223,000. Most purchasers are academics in
the 40-60 age bracket, well-to-do families looking for
quality housing.
Is the Jerusalem housing apartment undergoing a
special crisis?
"When it rains, everybody gets wet. Second-hand
apartment prices have dropped 5% since the beginning of
the year, and the number of transactions is down 50%. A
three-room apartment, that was selling for $180,000 in
January, sells today for $170,000. Lots of real estate
agencies, especially the small ones, have closed down. In
July-August, as distinct from previous years, hardly any
foreign investors came to Jerusalem. About a month ago,
I attended an Israeli housing fair in New York. I
concluded an agreement for the sale of 10 apartments in
Beit Hakerem to a group of returning Israelis, lawyers
and businessmen. Since US law does not permit apartments
to be sold without a prospectus, it was decided that the
ten prospective buyers would come to Israel during the
high holiday month, to sign the contracts. As soon as the
rioting broke out, the day after the Day of Atonement,
they all cancelled.
"Another problem is that wealthy secular families are
leaving Jerusalem for Mevasseret Zion. Also tending to
weaken the market is the fact that in the past year,
there has been a rising outward stream of secular
families. Those who could afford it bought cottages in
Mevasseret, others bought cottages for $235,000 in
Modi'in".
"What is the religious-secular breakdown of demand
for housing?"
"Ultra-orthodox families are buying apartments in low-
price neighbourhoods, such as the Shu'afat ridge or Beit
Shemesh, where there has recently been a big increase in
demand. The prestige neighbourhoods, where luxury is also
reflected in the rates, are mainly secular, with a 10%-
15% component of national-religious families".