Total real estate transactions plunged nearly 50% in July, compared with the historic peak reached in June. 9,200 housing deals were signed, 15% less than the average for July in 2012-2013, the Ministry of Finance reported today.
The investors, who led the steep rise in deals in June, caused by bringing deal forward in this market segment before the purchase tax hike at the end of June, were also the ones responsible for the drop in the number of deals in July. Deals by investors in June amounted to only 1,300, 80% less than in June and the lowest total posted since at least the beginning of the preceding decade.
Investors accounted for 14% of all deals, nearly 30% less than in June, and the smallest proportion since the turn of the millennium.
The small number of apartments purchased for investment in July stood out, in view of the fact that total deals in that month, even if lower than the average over the past four years, is still the sixth highest total in July in the past 14 years. Furthermore, if only people buying the only apartment that belongs to them are considered, July had the second highest number of deals of any July since 2002.
The fall in the total number of deals was moderated by the purchasers of first apartments. After a cumulative 60% rise in this market segment in May-June, compared to the low level in April, deals in this segment were down only 6% in July.
A geographic breakdown of deals showed wide differences between regions. While purchases were down by a steep 29% in the central region, purchases in the inland plain spurted 24% and purchases in the Tel Aviv region were up 9%, following a steep aggregate 80% increase in this region in May-June.
First apartment purchases in the Tel Aviv region reached their highest point since the peak posted in December 2013. Compared with the low point reached in this market segment (and nationwide)in April 2014, the number of purchases in Tel Aviv in July was 170% higher, This gap was widest in a nationwide comparison (the difference in the nationwide average was 90%).
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2015
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