Dispute Over Unsold New Apartments in Israel
Translated & summarized from Ice by baba
An Israeli industry leader reported a rise in ready, unsold apartments to 10,500 by August, a figure interpreted by some as a halving of completed units. The Ministry of Construction and Housing, however, claims 15,000 unsold apartments are ready for immediate occupancy. The debate hinges on the definition of "unsold" versus "ready and unsold" apartments. Industry figures suggest a smaller percentage of apartments are actually completed and ready for sale.
The story in 5 lines · by baba
- Unsold ready apartments rose to 10,500 by August, according to contractors' data.
- The Ministry of Construction and Housing claims 15,000 unsold apartments are ready for occupancy.
- Industry figures suggest a significant decrease in completed, unsold apartments.
- The definition of "unsold" versus "ready and unsold" apartments causes conflicting reports.
- Many ready, unsold apartments are located in areas near missile attacks.
A debate is ongoing in Israel regarding the number of unsold new apartments, with conflicting figures presented by industry representatives and government officials. Amit Guttlieb, Chairman of the Contractors and Builders Association in Tel Aviv and the Center, stated that the stock of ready and unsold new apartments increased from approximately 8,000 in April to about 10,500 in August. However, this figure is interpreted differently by some, suggesting it implies a significant number of these apartments are actually completed and ready for occupancy. If Guttlieb's data is accurate, it would mean the number of ready, unsold apartments has been cut in half.
Conversely, Yehuda Morgenstern, Director General of the Ministry of Construction and Housing, stated in July that the number of unsold, ready apartments stood at around 15,000, representing a roughly 31% increase over four months according to Guttlieb, but a significant decrease according to the Ministry's data. Morgenstern claims contractors have 15,000 unsold apartments that have received "Form 4" approval, meaning they are ready for immediate occupancy. He noted many of these are located in areas like Bat Yam, Lod, Be'er Ya'akov, and Bnei Brak, which have been affected by missile attacks.
The discrepancy arises from the definition of "unsold apartments." An unsold apartment is one for which a building permit has been issued. This can include units in projects that are still under construction or have not yet begun marketing. Nehama Bogin, Chairwoman of the Chamber of Real Estate Appraisers, dismissed claims of 85,000 unsold apartments as an "urban legend," focusing instead on Guttlieb's figures.
Ready, unsold apartments are those that have completed construction and received "Form 4" approval but have not yet been sold. Guttlieb's data suggests that just over 12% of unsold apartments are actually ready, with nearly 88% still in construction phases or only having permits issued, some potentially ready in three to four years. This indicates a decrease compared to the Ministry's figures, but represents a smaller portion of the overall unsold inventory.
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