The number of new apartments sold by contractors in February-April 2019 fell by 10 percent from November 2018 to January 2019. According to figures from the Central Bureau of Statistics
A total of 5,620 new apartments were sold in the last three months. After seasonal adjustment (seasonally adjusted data are obtained after deducting the effect of seasonality and festival and trading day effects, from the original data), a decrease of 6.1% was recorded in this period compared to the previous three months.
Since January 2019, there has been an average monthly decrease of 1.5% in the number of new dwellings sold, after an average monthly increase of 2.4% between April and December 2018, from 1,670 dwellings to 2,070.
However, an annual examination of the original data indicates that during the last twelve months (April 2018 to March 2019), there was an increase of 1.3% in sales of new dwellings, compared to the previous 12 months (April 2017 to March 2018).
Meanwhile, the month of April ended with a 9.8% increase in sales of new apartments compared to the previous month (March 2019), and of 14.3% compared to April last year.
The new apartments sold by the contractors constituted 53.6% of the total quantity requested for new apartments in the market, which stood at 10,490 apartments in the period reviewed. The rest, 46.4%, were dwellings not for sale that began construction, for example, for the owner's own use of building rights in the land, for purchase groups or for rent. According to the data, during this period the construction of 930 apartments in purchase groups began, one apartment per 6.1 dwellings sold by the contractors during that period. This compares to a figure of one apartment per 15.3 apartments, reported last month.
Last year construction of 47,430 apartments began - a drop of 10.4% compared to 52,930 apartments that began construction in 2017. According to data from the Central Bureau of Statistics published by the Central Bureau of Statistics (CBS) in 2018. This figure is also significantly lower Of the government target set for this year, in order to meet the demand for apartments, which stands at 60 thousand housing starts The actual number of starts is 21% lower than the government target.
The low supply may have negative implications for the government's efforts to continue lowering housing prices. Recall that according to the latest housing price index, there was a minor annual decline of 0.7% in housing prices during 2018.
In the second half of 2018, construction starts increased at an average rate of 3.7% per quarter, following an average 3.6% decline since the fourth quarter of 2016. As of the end of December 2018, the number of dwellings under active construction was approximately 117,600 Compared with 119,900 dwellings at the end of December 2017.
Of the total number of dwellings, 22.7% were built in single and two-family homes, and 27.5% were built in buildings of 10 stories or more. The highest proportion of single-family homes was built in the Northern District - about 54.9%, whereas in the Tel Aviv District these dwellings constitute only 4.7%.
By district, the largest number of dwellings that began construction last year was in the Central District with 24.8% of the total number of dwellings, followed by the Tel Aviv District with approximately 21% of the dwellings. In the Jerusalem District, construction of 7.3% of the apartments began.
The most significant declines compared to 2017 were in the Haifa District (37%), the Northern District (14.6%), the Southern District (12%) and the Jerusalem District (10.7%). In the Central District, a decrease of 5% was recorded, while in the Tel Aviv District an increase of 10.7% was recorded.
The highest number of dwellings that began construction last year was in Jerusalem with 2,877 apartments, an increase of 2.9% compared with the previous year. In second place is Tel Aviv with 2,740 apartments, down 20% from 2017. In third place is Herzliya, where there was a 46% jump to 1,685 apartments that began construction, and in fifth place Rosh Ha'ayin with 1,640 apartments, 2 times Compared with the previous year.
Other localities with notable increases include Tirat Hacarmel with about 1,200 apartments, 4 times as compared to 2017, Nahariya with about 720 apartments, three times as compared to 2017, Ashdod where the construction of 750 apartments began, 2.5 times compared with the corresponding period in the city of Ashdod, And Holon with about 1,170 apartments, twice as much as in 2017. In Beer Sheva, there was an increase of 27% to 1,232 apartments.
In the cities of Yavneh, Yehud, Kiryat Ono, Herzliya and Rishon LeZiyyon, the upward trend in building starts continued, which began in 2017. On the other hand, the effects of the occupant price plan are reflected in the data. In Kiryat Motzkin, for example, there was a drop of 80% Harish also saw a conspicuous decline of 76% to 650 apartments.