Revival in residential apartment sales due to fear of devaluation.
Over the past two weeks there has been a significant revival of small, residential apartment sales activity, and contractors report high activity, relative to the recent period. Contractors estimate that the primary reason for awakened interest is fear of a devaluation in early 1997.
On the other had, the luxury apartment market continues to suffer weakness, due to a lack of buyers and foreign investors. Recently concluded outstanding deals include:
Jerusalem and Environs
Jerusalem: The Penthouse company, owned by Shlomo Dhokey, has sold 24 2-room, 50 sq.m apartments in one month, in a Pisgat Ze’ev development currently under construction. The sales yielded $2.98 million, including VAT, or an average $124,000 per unit. The project includes 124 apartments.
Jerusalem: This month, the Dankner group and developer Yitzhak Pritzker have sold 3 apartments for a total $1 million, in the Jerusalem Towers project located on Rabbi Akiva Street. A British investor bought a 3-room apartment on the 13th floor for $420,000. A local business man purchased a 3-room apartment on a lower floor for $330,000, and a doctor bought a 2-room apartment for $260,000.
The 1100-unit building is already inhabited. Only a few apartment and penthouse units remain for sale.
Ma’aleh Adumim: The A. Barkan company sold 40 apartments for $4.6 million. Most were residential apartments, selling for an average $100,000 per unit. A number of 5-room apartments sold for $190-270,000.
Modi’in: Contractors participating in the recent housing fair, which closed last Thursday, report lively demand for apartments, whose prices have remained unchanged over the past few months. The Eliahu Feber company, for example, reports selling 5-room apartments for $20,000. Mashav sold 4-room apartments for $168,000.
Tel Aviv Region
Herzliya: The Dizengoff Trade company has completed the sale of 150 apartment units at the Sha’ar Ha’ir project for an average $350,000 per apartment unit, and a total yield $52.5 million.
Four-room apartments sold for $300,000 and 5-room apartments sold for $320-380,000. To date, the company also sold 5,000 sq.m in office space, out of a total 6,000 sq.m in the project, at an average $2,350 per sq.m, a total yield of $17.5 million. Total sales for the project now stand at $70 million.
Ramat Hasharon: Fashion importer I & V has rented a 35 sq.m shop located at the Ramat Hasharon shopping center. The company will pay a relatively low monthly rent of $34 per sq.m, index-linked, as the shop is located on the second floor. The lease is for a period of 1 year, with an option for an additional 4.
Lod: During the Hanukah holiday week, Migdalei Hazohar sold 25 3 and 4-room apartments for $3 million, or an average $120,000 per unit.
Shoham: An increased demand for rental units has been noted in Shoham, and prices are on the rise. Some lessees are IDF personnel based in the area. The most recent deal, transacted by Anglo-Saxon, was a duplex family cottage residence, located in the Tet neighborhood, for $950 per month. Rents are dollar-linked and the contract is for one year, with an extension option.
Petach Tikva: Sales of security apartments are continuing at an accelerated pace, according to Meonot Maccabi, a subsidiary of the Maccabi Health Fund. This past week, the company sold 7 apartments, of which the outstanding transaction was the sale of two 2-room apartments located in a new Petach Tikva project for $135-145,000. The company also sold two security apartments in Kiryat Motzkin, near Haifa.