A brand-new apartment

The sale of newly constructed apartments serves as an indication of activity in the construction and real-estate sector.

By YAIR ASSAF-SHAPIRA
Jerusalem construction 311 (photo credit: Courtesy)
Jerusalem construction 311
(photo credit: Courtesy)
The sale of newly constructed apartments serves as an indication of activity in the construction and real-estate sector, in terms of both supply and demand. For the most part these apartments are sold “on paper,” that is, before construction is completed. The data below relate to apartments built through private initiatives, not at the initiative of the Construction and Housing Ministry.
During the first half of 2011, a total of 380 new apartments that had been built through private construction were sold. This figure represents a decrease in the sale of such apartments in comparison to the second half of 2010, during which 630 new apartments were sold within the city. The number of new apartments sold in Jerusalem is low in comparison to other cities in Israel. During the first half of 2011, for example, 770, 590 and 540 apartments were sold in Petah Tikva, Netanya and Ashkelon respectively.
Despite the low figure for the first half of 2011, there has actually been an increase in the sale of new apartments in Jerusalem.
During the period from the beginning of 2009 until June 2011 (five half-year periods), a total of 2,360 privately constructed apartments were sold in Jerusalem – 650 more than during the preceding period of the same duration (July 2006 through the end of 2008).
Similarly, increasing trends were recorded in other cities, foremost among them Petah Tikva and Ashkelon, where apartment sales during this period rose by 1,680 and 1,440 respectively. The opposite trend was recorded in Tel Aviv-Jaffa, Holon and Rishon Lezion, where apartment sales decreased during this period in comparison to the preceding period.
Compared to other districts in Israel, the apartments sold in the Jerusalem District (the city of Jerusalem and additional localities) during the first half of 2011 had been on the market a relatively long period of time, measuring from the start of construction until their sale. These apartments remained on the market approximately seven months (median value), compared to 1.7 months for the national median. For the purposes of comparison, during 2010 apartments in the Jerusalem district were “snatched up” within only 1.3 months, compared to 2.5 months for the national median.