ISRAEL, REAL ESTATE SECTOR SLOWS DOWN
Globes, one of the main Israeli economic daily newspapers reports the news that, according to a survey published in mid-August by the Central Bureau of Statistics at the initiative of the Ministry of construction and housing, the purchases of new homes in second quarter of 2018, amounted to 5,329, down 17%, compared to 6,430 in the second quarter of 2017. As of May 2016, the demand for new homes has fallen by an average of 1.5% per month, from 4,220 homes in May 2016 to 2,890 to June 2018.
Nearly 26% of new homes sold in the second quarter were in the northern district, 17.5% in the district of Tel Aviv, 12% in that of Haifa and 9% in the district of Jerusalem.
8,500 housing units were purchased in Israel only in June 2018, of which 530 as part of the subsidized price plan. The figure was 10% lower than that of June 2017.
A survey of the real estate market published by the Chief Economist of the Ministry of Finance stated that while the volume of business had increased in May, it went down in June to one of the lowest levels for this month in the last decade. The aggregate number of new homes sold between January and June was 9% lower, but this decline was partially offset by the number of apartments sold as part of the revised price plan, which was twice that of the corresponding period last year. Investors bought only 1,100 housing units throughout Israel and in Tel Aviv, only one in four buyers was an investor. A historical minimum, according to the Ministry of Finance, for investors, who in recent years have represented 40% of buyers in the most important economic center of the country.