The Marker, Hadar Horesh, 12.03.2020
Despite official declarations of a continued price plan for the resident, the Israel Lands Authority (REM) continues to dissolve the plan, and its share of land authority auctions is declining. The first two months of the year and comparison with the corresponding period in 2019 indicate that land tenure for subsidized housing has decreased by 36% and amounted to 2,129 apartments compared to 3,335 apartments in the corresponding period last year.
Rami also delays the publication of the large auction brochure as part of a plan for the buyer. The tender for 1,077 apartments in Jerusalem is defined as "the price per dweller", but under the updated policy, only about 800 apartments are expected to be sold under the plan and the balance is expected to be sold in the free market. This forecast will reduce the supply of apartments in the framework of "per-user price" by 45% compared to the same period last year.
Reduced supply of subsidized housing is expected to affect the market over the coming year, as a result of the expected decrease in supply of subsidized housing, which to some extent also affects the average price per apartment and measuring changes in housing prices. Compared to the results of the tenders for the first two months of the year, a 31% increase was seen in marketing price plans to the buyer.
The first two months of 2020 indicate some improvement in the PA's land supply, but it is still behind the target set by Finance Minister Moshe Kahlon as he takes office - plots for the construction of 60,000 apartments a year in demand areas. In the first two months of the year, the Authority marketed plots for the construction of 5,054 apartments, an improvement of 1.3% compared to the same period last year, and still half the rate required in accordance with the targets set by the Treasury.
The data only relates to the publication of tenders - some of which are delayed or not implemented. In January-February, 1,914 apartments were auctioned, a 69% jump over the same period last year.