Mr. Eliab the son of Simon, CEO of the Association of Builders of the country, is not surprised by

Silver

Promises to lower land prices that markets the state to get lower housing prices crashing back to reality. In 2013 there was an average increase of 7% nationwide land prices. Haifa and South prices jumped 22% from the lobby they have tripled due to a tender one. In the center actually decreased by 1% since the beginning of 2013
At a time when a new government is established house affordability which aims to lower the prices of apartments in Israel, the question is what really makes the country to provide cheap land for contractors, since today the price of land is about one third of the purchase price. An examination of the "Calcalist" suggests that the state sells land priced tens and even hundreds of percent compared to 2003. In the last decade land prices rose sharply by 43% on average nationwide, in Tel Aviv when the price jumped 513%, 407% in Jerusalem and in the central region at 147%. According to data from the Israel house affordability Land Authority average price land per housing unit density construction, figure calculated by dividing the price of land is the number of housing units can be built on it.
Two years prior to the social protests of 2011 raged residential land market, overwhelmingly dominated by the state, despite promises of politicians lead to a decline in land prices, a drop in housing prices. Recently warned the study published by the Bank of Israel, that land prices marketed by the Israel Lands Authority in the central region five years prior to the housing protests surged by 60%, and at the same rate also soared house prices themselves; At that time, there was a sharp increase of 30% in land prices on average nationwide. In 2009-2010 the price of the land to a third final price of the apartment; One-third the price reflects the cost of construction; And a third of the price of an apartment is taxes and profits of an enterprise.
An examination of the "Calcalist" shows that even a sudden drop in the price of land per year after social protests, in 2013 when land prices rise. If the price of land is one-third of the purchase price (and demand areas even more than that), how can house prices go down if land prices rise?
"Calcalist" performed an analysis of the results of the Israel house affordability Lands Authority auctions and checked the price of land per housing unit high-density apartments. This is where the developer tenders offering the highest price in the field - winning - as is customary in most auctions. The research revealed that the price of a unit of land including development (price determined by the Administration aims to cover the costs of infrastructure, in particular) - the amount that the winning contractor out of his pocket house affordability - was in January-October at approximately NIS 225 thousand average increase of 7% compared to the price of a unit of land Administration auctions in 2012, which stood at an average of NIS 210 thousand.
Even if development house affordability costs neutralizing the compound complex variable - naturally, there is no law quarrying building foundations duly mountain house affordability landscape house affordability work on the flat - land prices increased house affordability net. In 2012 the price per unit of land was 119 thousand shekels, and he climbed 2% to about NIS 121 thousand in 2013. Parallel development costs soared ground units (which have been added, house affordability as mentioned, the price of land itself), by 14%, from about 91 thousand shekels in 2012 to approximately NIS 104 thousand in 2013.
Geographical breakdown of the results of the Israel Lands Authority auctions show that many parts of the country showed stable or rising prices: Haifa area per unit land price soared including the development of approximately 22%, from an average of NIS 119 thousand in 2012 to 145 thousand per year. Southern also completed a jump at the same rate in a year: from 95.5 thousand shekels per unit of land last year to 117 thousand per year.
And the Tel Aviv area remains the price of land per housing unit (including development) unchanged, at 1.13 million. This is just the price of the land - without the costs of construction, personnel, bank financing and taxes, building-up on him to complete the construction of the apartment. And to put things in perspective, at 1.13 million can buy 2-room apartment in Jerusalem, 4 room apartment in Haifa and the Haifa suburbs 5 bedroom - according to the Central Bureau house affordability of Statistics.
The examination also revealed "Calcalist" that was recorded in the central region of total stability in land prices: in 2013 the price was land per housing house affordability unit (including development) for 455 thousand shekels, a minimal reduction of less than 1% compared to 2012, when the price was average of NIS 458 thousand. It should be noted that compared to the peak in 2010, then boiled the land market house affordability and the price per unit of land in the center was NIS 478 thousand, house affordability a decline of 4%. While in the Jerusalem area, there was a 27% drop in prices of plots: from 333 thousand shekels per unit of land (including development) in 2012, to 244 thousand shekels land per housing unit, on average, this year.
The Jerusalem area, including several towns and cities, and the capital itself tripled the price of land from 2012 to 2013 to 1.2 million. The main reason is that in March from Isras paid'll add 196 million (including development costs) of land for the construction of 180 housing units in Jerusalem, derives transaction price per unit of land of 1.1 million.
Mr. Eliab the son of Simon, CEO of the Association of Builders of the country, is not surprised by the fact that in 2013 there has been a decline in land prices that markets the Israel Lands Authority. "As long as the administration marketed land to the highest bidder, there is no reason land prices will go down, especially in high demand areas." He said, "When house affordability outbound marketing desirable land, the number of NGOs and contracting firms competing for the high ground very much. To win the contestants have to raise the bid, and in some cases the land is sold at a higher price than even the assessment of the administration. house affordability The price is paid by the end homebuyers" .
Life According to Feiglin, house affordability CEO ZMH Hammerman, price increases Administration auctions this year reflects the shortage of land, and he estimates that the prices of apartments will be built on land purchased house affordability inexpensively house affordability not fall in three or four years. "Land prices are the main factors to increased housing house affordability prices, house affordability and clear Who benefits from the prices of land. If the state would like to download them, it was subsidizing the price. "
The data show stability in land prices in the central district of Tel Aviv and the province in 2013, but Feiglin argues that this is not good news. "The Central Region