Penthouse in Ashkelon Resold at Same Price After Deal Collapsed
Translated & summarized from Globes by baba
A 188-square-meter penthouse in Ashkelon's "Breeza" project was resold for NIS 7.5 million by Afgad, the same price as a deal that collapsed two years ago. The initial buyer failed to sell her own properties, leading to the cancellation. The current buyer is an overseas resident, and the sale highlights the impact of sea proximity on value. The luxury market remains robust, with overseas buyers comprising over 20% of purchasers in the project.
The story in 6 lines · by baba
- A penthouse in Ashkelon's "Breeza" project sold for NIS 7.5 million, the same price as a prior canceled deal.
- The previous transaction collapsed because the buyer could not sell her own apartments.
- The current buyer is an overseas resident who managed the purchase remotely.
- Afgad's VP of Marketing noted sea proximity significantly impacts apartment value.
- Overseas residents constitute over 20% of buyers in the "Breeza" project.
- The luxury real estate market shows resilience to financing conditions and market fluctuations.
A 188-square-meter, six-room penthouse with an 115-square-meter balcony on Modai Street in Ashkelon has been sold for NIS 7.5 million. The property is part of the "Breeza" project by Afgad, located about 350 meters southeast of the city's marina and second line from the sea. This area is considered one of Ashkelon's most prestigious, with nearby projects like "Damari Yamah" selling at approximately NIS 28,000 per square meter.
The "Breeza" project consists of 175 apartments in three buildings. Afgad began marketing the project in the latter half of 2019, with prices ranging from NIS 1.4 million for three-room apartments to NIS 2 million for five-room units. In the three years since, apartment prices within the project have seen double-digit percentage increases, with larger apartments experiencing higher growth. Due to its second-line location, prices average around NIS 22,000 per square meter, lower than first-line properties.
This marks the second transaction for the penthouse, as the initial deal, also for NIS 7.5 million, was canceled approximately two years ago. The first buyer, a retiree, conditioned the purchase on selling two of her own apartments, which she failed to do, leading to the deal's cancellation late last year. The current buyer is an overseas resident who purchased the unit for the exact same price.
Yael Dekel, VP of Marketing at Afgad, stated that the sale highlights the significant impact of proximity to the sea on property value, noting a similar penthouse elsewhere in the city would sell for half the price. The buyers are a Jewish couple from the United States who plan to split their time between the US and Israel. Dekel added that overseas residents constitute over 20% of buyers in their project and similar beachfront developments in Ashkelon, with this particular transaction managed remotely from negotiation to signing.
Dekel also commented on the luxury market, observing that buyers are less sensitive to financing conditions and market fluctuations, being well-informed and expecting high standards of service and specifications comparable to international norms, even outside Tel Aviv. The current sale is considered unusual, especially given that very few transactions exceeding NIS 7 million have been recorded in Ashkelon this year. The price per square meter for this penthouse is approximately NIS 32,000, which is deemed reasonable considering its features and the fact that the price has not increased from two years prior, implying a real price decrease.
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