Parshkovsky Launches Online Auction for Hundreds of Apartments Amid Contractor Struggles

Parshkovsky, a major 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 intensifying competition in the new housing market as developers seek innovative sales strategies amid sluggish demand.

Unlike traditional promotions or selective discounts, Parshkovsky is consolidating a large inventory of apartments and inviting the public to bid, with the highest offer for each unit winning. This approach serves both as a sales event and a broad market test to gauge current buyer willingness to pay. The projects include HaGaDa in Tel Aviv, with three-room apartments starting at 5.25 million shekels and mini-penthouses at 10.75 million, and others in Herzliya, Ashdod, and Haifa with prices beginning as low as 1.9 million shekels.

The auction highlights the broader challenges facing Israeli developers, who hold approximately 85,000 unsold units and face high financing costs. Slow sales increase financial pressure due to accumulating interest and operational expenses, while buyers remain cautious amid high prices and mortgage burdens. Developers have previously used various incentives such as delayed payments, discounts, and giveaways to stimulate sales.

Parshkovsky is financially stable, with a market value of about 3.2 billion shekels and equity of 2.2 billion, though its stock has declined 4% this year. The auction exemplifies the sector's urgent need for creative solutions to revive sales and maintain cash flow for ongoing construction and debt servicing.