Parshkovsky Launches Online Auction for Hundreds of Apartments Amid Contractor Struggles

Parshkovsky, a leading Israeli real estate developer, has initiated an online auction offering hundreds of apartments across six projects nationwide. The auction, lasting three days, allows buyers to submit bids starting from minimum prices ranging between 1.9 million and over 10 million shekels. This move reflects the intensifying competition in Israel's new housing market, where developers are seeking innovative sales methods amid a slowdown.

Instead of traditional promotions or limited discounts, Parshkovsky is consolidating a large inventory and inviting public bids, with the highest offer for each apartment winning. This approach serves both as a sales event and a broad market test, providing insight into current buyer price willingness. The projects include HaGaDa in Tel Aviv, with three-room apartments starting at 5.25 million shekels and mini-penthouses at 10.75 million; Herzliya’s Gan Rashel starting at 3.56 million; Galil Yam in Herzliya from 3.12 million; Kiryat Peres in Ashdod from 2.35 million; Ramat Hanasi in Haifa from 1.9 million; and Lincoln Slopes in Haifa with garden apartments starting at 1.98 million shekels.

The auction highlights broader market challenges: developers hold about 85,000 unsold units, face high financing costs, and must maintain sales velocity to service debt and continue construction. Buyers remain cautious due to high prices and mortgage burdens, preferring to delay purchases. Developers have previously used financing promotions, discounts, and gifts to stimulate sales, but the current auction signals a need for more creative solutions.

Parshkovsky itself is financially stable, with a market value of approximately 3.2 billion shekels and equity around 2.2 billion. Its stock has declined about 4% since the start of the year but gained 10% over the past 12 months. This auction is part of a growing trend among Israeli developers to adapt to a sluggish housing market by increasing buyer engagement and accelerating sales.