Israeli real estate development and construction company Hanan Mor Group (TASE: HNMR) has collapsed following a huge purchase of land in Tel Aviv's Sde Dov and yesterday it received a stay-of-proceedings for 30 days in order to form a debt settlement with its creditors. The company has not sold any apartments on the land that it bought but meanwhile it is possible to understand the prices in the neighborhood from the sales of rivals.
Israel Canada has sold 120 out of 480 apartments
The vast majority of apartments that have already been sold in Sde Dov were by Israel Canada (TASE: ISCN) unit G.Z. Madaf 35, which won a tender for 8.65 dunams (8,650 square meters) of land for NIS 1.25 billion.
In its third quarter 2023 financial results, Israel Canada reported that it has signed 120 contracts for apartments at Sde Dov worth an overall NIS 931 million out of the 480 apartments it is building. The average price of the apartments it has sold is NIS 79,200 per square meter.
Singer Noa Kirel, who is presenting the advertising campaign for Israel Canada bought a five-room apartment in the project for NIS 10.5 million.
Israel Canada's plan for the project was approved in May and the excavation and foundations plan should be approved in the second quarter of 2024. The company's Sde Dov project will include a 39-floor residential tower and six surrounding lower buildings.
Most of the apartments already sold are in the high-rise. Data from the Israel Tax Authority show that a 60 square meter three-room apartment on the sixth floor of the 39-floor building was sold for NIS 4 million - in other words NIS 66,000 per square meter. At the end of September, a 98 square meter, three-room apartment on the 13th floor was sold for NIS 8 million.
The Israel Tax Authority data also show that in one of the lower buildings, Israel Canada sold a 182 square meter six-room apartment on the eighth (of nine) floor for NIS 21.7 million. This price reflects NIS 119,000 per square meter. A slightly large 202 square meter apartment was sold last March for NIS 20 million, reflecting NIS 100,000 per square meter.
Two one-room apartments were sold in July. One of them was a 32 square meter apartment on the fourth floor of the 39-floor tower, which was sold for NIS 3.1 million, reflecting NIS 96,000 per square meter.
Avisror: 15 apartments sold without marketing
Development and construction company Avisror won a tender for 3.7 dunams (3,700 square meters) of land in Sde Dov on which it will build 406 apartments. Beneath the radar, Avisror has begun sales on the project and to date has sold 15 apartments.
Israel Tax Authority data show that in recent months Avisror has sold three two-room apartments of 46-48 square meters for NIS 3.5 million each, reflecting NIS 76,000 per square meter. The company has also sold four three-room apartments, 72 square meters in size for about NIS 5 million each, reflecting NIS 69,500 per square meter.
Already two years ago, Avisror sold three six-room apartments of about 200 square meters on high floors with two parking spaces for about NIS 16 million each, reflecting NIS 80,000 per square meter.
Published by Globes, Israel business news - en.globes.co.il - on November 29, 2023.
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