Penthouse in Ashkelon Resold at Same Price After Deal Collapsed

A 188-square-meter, six-room penthouse with an 115-square-meter balcony on Modai Street in Ashkelon has been sold for 7.5 million shekels. The property is part of the "Breeza" project by Afgad, located about 350 meters southeast of the local marina, on the second line from the sea. This area is considered one of Ashkelon's most prestigious, with nearby luxury projects selling at approximately 28,000 shekels per square meter.

The "Breeza" project comprises 175 apartments in three buildings. Afgad began marketing the project in the latter half of 2019, with prices ranging from 1.4 million shekels for three-room apartments to 2 million shekels for five-room units. In the past three years, apartment prices in the project have risen by tens of percent, with larger apartments seeing a higher increase. The price per square meter in this project averages around 22,000 shekels due to its second-line location.

This marks the second transaction for the penthouse, as a previous deal for a similar amount about two years ago was canceled. The initial buyer, a retiree, could not complete the purchase because she failed to sell two of her own apartments, which were intended to fund the acquisition. The deal was called off late last year, and the penthouse returned to Afgad.

The current buyer is an overseas resident who purchased the apartment for the exact same price of 7.5 million shekels. This situation highlights the challenges in the recent housing market, as the initial buyer struggled to sell her properties, and Afgad did not increase the penthouse price despite the delay. The current sale is considered unusual, especially given that very few transactions exceeding 7 million shekels have been recorded in Ashkelon this year.

The price per square meter for this penthouse is approximately 32,000 shekels. This is considered reasonable considering it's a penthouse, on the second line from the sea with a sea view, and the price has remained the same as two years ago, effectively representing a real price decrease. Yael Dekel, VP of Marketing at Afgad, stated that proximity to the sea significantly impacts apartment value, noting a similar penthouse elsewhere in the city would sell for half the price. The buyers are a couple from the US 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 that negotiations and the signing were conducted remotely.