Surprising recovery: in June there was a record sale of apartments since the outbreak of the crisis

wwwww

by Ifi Reporter Category:Real Estate Aug 11, 2020

Surprising recovery in the housing market: A survey by the Chief Economist of the Ministry of Finance shows that in June there was a record sale of apartments since the outbreak of the crisis. The increase was also recorded compared to June last year.
Total transactions last June amounted to 10,900 - an increase of 16% compared to June last year. After deducting price-per-tenant sales, 9,100 transactions were recorded in the free market - an increase of 11% compared to the corresponding period.
4,200 new apartments were sold in June, the highest monthly number since the beginning of the year. After deducting government-subsidized sales, contractors' sales in the free market amounted to 2,500 apartments - an increase of 26% compared to June last year. An unusual increase of 100% was recorded in the sales of contractors in the Beer Sheva area. The Chief Economist has no explanation for the exceptional increase, and one of the proposed explanations is the publication of expected benefits for purchases in the periphery, and the advance of purchases by buyers who have concluded that they are not eligible and there is no point in continuing to wait.
Investors purchased 1,200 apartments in June, unchanged from June last year, after four consecutive months of sharp declines. At the rate of total transactions, the weight of investors was only 11%, two percentage points lower than in June last year. Geographical segmentation found that there was a significant increase in investor purchases in the periphery, probably due to the low price levels that allow higher yields to be achieved.
Investor sales in June totaled 2,100 apartments - a 15% increase compared to June last year, and the highest level in these sales since December 2018. The increase is twice as high as the growth rate recorded in the total number of transactions in second-hand apartments. Investors' inventory continued to fall sharply in June: about 900 apartments were deducted from inventory. Since 2016, about 25,000 apartments have been deducted from inventory.
The young couples purchased 5,800 apartments in June - a sharp increase of 28% compared to June last year. After deducting purchases as part of the price per occupant, the purchases of young couples in the free market amounted to 4,000 apartments - an increase of 19% compared to June last year, after four consecutive months of sharp declines.

In a geographical segmentation, it was found that the increase in the purchases of young couples in the free market in June encompassed all areas, with the exception of the Hadera area, where these purchases continued to fall by 10%. The area that led the increase in purchases of young couples in the free market in June was Beer Sheva, where there was an unusual increase of 56%. These purchases reached 590 apartments - one of the highest recorded in this area in recent years. As part of the price per occupant, 1,800 apartments were sold in June - a sharp increase of 53% compared to June last year.
Analysis of the findings indicates a very high rate of singles, among those for whom this is the first apartment. Thus, this rate was 40% in June, twice as high as the "normal" rate of this parameter among the total number of first-time home buyers.
Although purchases by singles are often identified with purchases actually made by parents, while avoiding the high tax rate imposed on "another apartment" - the analysis of salary levels of singles purchasing first apartment in the Beer Sheva area last June actually indicates salary levels close to the average salary in the economy. , Which increases the probability that the buyer is indeed the real owner of the apartment. It is possible, as noted earlier, that this population fears a future increase in demand - for example against the background of providing purchase grants that they themselves may not necessarily be entitled to, and therefore purchase an apartment early.
The recovery in contractors' sales in June was also reflected in a significant increase in the potential cash flow from the sale of new apartments (including government-subsidized apartments). In June, this cash flow amounted to NIS 7 billion, a real increase of 28% compared to June last year, after three months of sharp declines in this cash flow.
In total, in the last four months since the outbreak of the Corona crisis (March-June), the cash flow of contractors from the sale of apartments amounted to NIS 15.2 billion, a sharp decrease of 31% compared to the corresponding period. About 30% of the contractors' cash flow in June was due to sales as part of the price per occupant, an increase of four percentage points compared to June last year.

429 Views

Comments

No comments have been left here yet. Be the first who will do it.
Safety

captchaPlease input letters you see on the image.
Click on image to redraw.

ABOUT IFI TODAY

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum

Testimonials

No testimonials. Click here to add your testimonials.