After the downturn in the second quarter of 2020, which came due to the corona, it seems that the actions taken by the Bank of Israel, including lowering the purchase tax and removing barriers to real estate investors, along with zero interest rates – of course – managed to revive the market. The chief economist at the Ministry of Finance paints a pretty optimistic picture. , When in the third quarter of 2020 there was a recovery in the number of transactions in the free market, after the low recorded in the previous quarter, with the outbreak of the corona plague.
The data show that “as if there is no corona”. The number of transactions in the last quarter was 25.8 thousand apartments, an increase of 9% compared to the corresponding quarter last year. However, in the Tel Aviv and Central areas, the number of transactions continued to decline in this quarter as well. In the aggregate since the beginning of the year, there has been an 8% decrease in the number of transactions compared to the same period last year.
The chief economist at the Ministry of Finance says that “the increase in transactions in the third quarter was led by investors. The total number of apartments purchased was 4.3 thousand apartments, an increase of 19% compared to the corresponding quarter last year, due to lower purchase tax at the end of July. “14% higher by 1.5 percentage points compared to the corresponding quarter last year.”
“Analysis of investors’ wage levels and their employment characteristics shows that the increase in investor purchases coincides with the entry of less established households compared to the first two quarters this year, but there has been a decline in the rate of self-employed and company owners among investors.”
More investors with fewer assets
According to the survey, “investor sales in the third quarter also recorded a significant increase of 16%, amounting to 6,000 dwellings. At the same time, the average capital gain on these sales continued to fall, but the increase in the sale of dwellings at a capital loss was halted.
“The inventory of apartments by investors continued to decline in the third quarter, during which about 2,000 apartments were deducted. In the analysis of the leading cities in this inventory decline, the fact that investors tend to leave Haifa more than Tel Aviv stands out.
In addition, purchases of the first apartment in the free market in the third quarter amounted to 11,000, an increase of 11% compared to the corresponding period last year. Including the apartments purchased with a government subsidy, this total purchase was 15.3 thousand, a moderate increase of 4% compared to the corresponding quarter last year, against the background of a 10% decrease in purchases under the “price per occupant”.
Purchases of housing developers in the third quarter amounted to 10.4 thousand apartments, a moderate increase of 2% compared to the corresponding quarter last year, despite a significant increase in the rate of housing developers who purchase an apartment before selling their previous apartment.
The inventory of dwellings pending at the end of the third quarter was 17.3 thousand dwellings, an increase of 15% compared to the level of this inventory before the outbreak of the corona plague. This is also the highest level of this inventory since 2014.
The total number of new dwellings purchased in the free market in the third quarter of 2020 was 6.9 thousand dwellings, an increase of 23% compared to the corresponding quarter last year. The number of transactions in second-hand apartments amounted to 19,000 apartments in the third quarter, a relatively moderate increase of only 4% compared with the corresponding quarter last year.
“In segmenting these sales, it was found that the sale of apartments by housing improvers recorded a decrease of 1%, compared with a 16% increase in investor sales. It is possible that housing developers tend to be less flexible in price, “she concluded.
Comments on the article(0):
Your response has been received and will be published subject to system policies.
Thanks.
For a new response
Your response was not sent due to a communication problem, please try again.
Return to comment