Three buyer fixed price tenders - in Jerusalem, Yokneam, and Beit Shemesh - have been successfully completed, with winners being announced for all the lots marketed. The tenders, which were closed yesterday, included lots for the construction of a total of 485 apartments, all at discount prices, for those eligible for the buyer fixed price plan.
According to the tender results, a 100-sq.m. apartment in Jerusalem will be sold to eligible buyers starting at NIS 1.37 million. A 100-sq.m. apartment in Yokneam will be sold to eligible buyers starting at NIS 846,000, and a 100-sq.m. apartment in Beit Shemesh will be sold to eligible buyers starting at NIS 1.074 million.
The tender in Jerusalem involves the Ramat Shlomo neighborhood, a haredi (ultra-Orthodox) neighborhood located beyond the Green Line. This tender, the largest of the three just completed, included 438 housing units. Under the urban building plan applying to the area, 80-120-sq.m. apartments can be built there. According to Ministry of Finance and Israel Land Authority (ILA) figures, the winning prices in Jerusalem reflect a 24% discount on the price for apartments sold on the free market. The winners in this tender were Guy and Doron Levy (144 housing units), Kotler Adika Building (94 housing units), and Dalia Eliasfor Building Contracting , which won two lots zoned for a total of 200 housing units.
The winner in the tender in the Sha'ar Hagai neighborhood in Yokneam, which included only 11 housing units, was E.R. Cohen Contracting and Engineering. According to Ministry of Finance and ILA figures, the prices reflect a 31% discount on the market price.
The winner in the Beit Shemesh tender, which included 36 housing units in the Ramat Beit Shemesh neighborhood, was Ofek-Shelly Building and Development. According to Ministry of Finance and ILA figures, the prices reflect a 17% discount on the market price.
The contractors' bids in all of the tenders were lower than the maximum price set for the tender.
Minister of Finance Moshe Kahlon said, "A year ago, no one would have believed that apartments would be sold all over Israel at major discounts on the market price. Today, the buyer fixed price is consolidating this situation in practice - a state of hope for young couples and those without housing in Israel."
Minister of Construction and Housing Yoav Galant added, "The buyer fixed price plan is producing results, and making affordable housing available to all groups and sectors in Israeli society everywhere in Israel. We hope that the 20-30% cut in prices already visible in the framework of the buyer fixed price plan for young couples will cool off the entire housing market."
Published by Globes [online], Israel business news - www.globes-online.com - on December 29, 2015
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