The last great lottery of price occupant before the election, to be held in early September, was rejected by the Ministries of Finance and Housing and Construction indefinitely. The draw was supposed to include 3,500 affordable apartments, many of which demand areas in central Israel.
Housing headquarters sources said yesterday The Marker that the reason for the decline is the lack of plots planned, due to the tenders issued recently by the Israel Lands Authority (Rm"i). It was reported that the cancellation of the lottery is not the final or end of the month will be successful land auction conducted by Rm"i may be renewed lottery.
Gospel eliminating many disappointing draw, because the ministry has already circulated unofficially encouraging information on the extent and location draw apartments in desirable areas. Among areas: Jerusalem, Rehovot, Rishon Lezion, Nazareth and Maale Adumim. Another row was canceling a series of priorities according to lottery participants starting date of the queue, that is, regardless of the Series A, B and C.
So far, housing headquarters announced the eight lotteries as part of the price occupant during which won about 65 thousand thanks to the apartment. The draw took place in May last year in which participants were 4,708 apartments. Actually, received so far about 3,000 have their apartment.
Plans price occupant were so far the main lever by the Ministry of Finance to reduce the cost of housing. Because the plans of tens of thousands of young couples out of the free market and expected to get a discounted apartment lottery. The downturn in lottery and fear that the program will be discontinued following the election results have changed the mood in the housing market and led to an increase in slow but steady housing prices during 2019. The announcement of the intention to hold another big lottery end of the year is intended to cool the heated market and moderate price increases.
A senior source in the industry claimed this week that it was the success of the program led paradoxically past auctions failure of plots for construction within the framework of the occupant. "Today is more difficult to sell the lots for construction. Many auctions conducted by Rm"i contractors are closed with no bids. This previously unknown phenomenon. In many places’ prices have dropped or created excess supply, and contractors do not submit proposals for fear that there will be buyers for apartments. "
List of tenders and their results published by the Israel Land Authority reveal mixed trends of sales of plots in different areas, some of the auctions failed offered residential land areas that are considered high-demand areas. Among other things, failed several tenders in the sun, which is expected to grow over the next decade by tens of thousands of housing units, Be'er Sheva, Ramle belongs in all respects to the central region, Maalot Tarshiha, Kiryat Bialik, Maale Adumim, Jerusalem and others.
Housing Headquarters note in the periphery, there are almost no places where there are shortages cause price rise apartments and, in many places, has been a decrease in housing prices, even when the Central Bureau of Statistics indicate an increase in the average price of apartments. The program has difficulty affect the prices of apartments in the area of demand in central government since the amount of land in these areas is relatively low. Government policy to lower prices for apartments in these areas is based on encouraging urban renewal programs (gentrification and plan 38).
Housing staff previously attempted to accelerate the marketing of the apartments through lots yet to receive building permits and in some cases even without the final approval of town plans. Winners apartments on these plots could not sign contracts with the contractor not set any deadline requires the delivery of the apartments. Many lottery winners lost a significant portion of leaf and sometimes the assumption that they had hoped for as part of the draw. Upon review staff to issue lottery ceased apartment without permission.
Ministry of Housing and Construction said that "the opening date of the draw declined to make improvements for the benefit of participants and add apartments." The Finance Ministry did not respond.