Median Prices Mislead: Apartment Values Drop in Beer Yaakov, Stall in Rishon LeZion

A new analysis comparing similar apartments in Rishon LeZion and Beer Yaakov reveals that median price per square meter data can be misleading. By examining apartments of the same size, in the same building, on the same street, and in the same neighborhood, the study found that second-hand apartment prices have remained largely unchanged in both cities over the past six months compared to the same period last year. In many cases, similar apartments sold for slightly less.

The data, based on transactions reported to the Tax Authority, shows clearer signs of a price decrease in Beer Yaakov, while Rishon LeZion appears to be experiencing a market freeze. The analysis excluded detached houses, land, commercial properties, very small apartments, and unusually low-priced sales. Approximately 580 second-hand transactions were recorded in Rishon LeZion in the recent period, compared to about 710 last year, and 170 in Beer Yaakov versus 210 last year.

When comparing apartments with identical characteristics within the same buildings, the data indicates a median price decrease of approximately 1.9% in Rishon LeZion and a more significant 4.3% in Beer Yaakov. This contrasts with the overall median price per square meter, which showed a slight increase in Rishon LeZion and a moderate decrease in Beer Yaakov, highlighting the limitations of the median metric when sales volumes or the types of properties sold fluctuate.

Further analysis of individual buildings and streets in Rishon LeZion shows mixed trends, with some neighborhoods experiencing slight price drops and others remaining stable or seeing minor increases. However, a notable exception is the "HaRishonim" neighborhood, where prices per square meter in new buildings have surged over 20%, an anomaly attributed to the sale of newer, more expensive units. In Beer Yaakov, the smaller number of transactions makes neighborhood-level comparisons more challenging, but direct building-to-building comparisons also indicate a general downward trend, particularly for larger apartments.

Comparing similar four-room apartments in the current period, Beer Yaakov's Radiso Citi neighborhood saw prices around NIS 2.7 million for approximately 103 square meters. In Rishon LeZion's Neot Shikma, a similar apartment sold for NIS 2.55 million but was smaller at 96 square meters, indicating a higher price per square meter. Older neighborhoods in Rishon LeZion are considerably cheaper, while its most expensive areas command significantly higher prices than any in Beer Yaakov. The study concludes that Beer Yaakov is not uniformly cheaper or more expensive than Rishon LeZion, but rather occupies a middle ground, offering larger apartments for a comparable price to older Rishon LeZion neighborhoods, but remaining cheaper than its most exclusive areas.