In the third quarter of 2021, 31.3 thousand apartments were purchased on the free market, a jump of 22% compared to the corresponding quarter in 2020, according to a survey by the chief economist at the Ministry of Finance.
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The figure reflects an all-time record (the Treasury noted that this is a record of at least 20 years), compared to parallel quarters. At the same time, the percentage increase is more modest than in the previous quarter, with the decrease in this quarter compared to the previous quarter being attributed to the Tishrei holidays, which almost completely neutralized September this year.
The increase in the number of transactions in the free market encompassed all areas, with the edges being a 3% increase in the Jerusalem area and a 55% jump in the Tel Aviv area.
In terms of volume of purchases, compared to all quarters (not just the third quarters) this quarter is ranked sixth, only 13% far from the record level recorded in the second quarter of 2015 following the early increase in purchase tax for investors. The weight of the periphery in all purchases was particularly high and reflected a 2.5% increase compared to the volume of transactions in the periphery before the corona plague.
The share of first-time homebuyers in the purchase of apartments in the periphery has risen from 41% in 2019 before the epidemic to 52% now, but lower than in the previous quarter when their share stood at 55%. By comparison, the share of housing improvers in buying apartments in the periphery has risen from 39% pre-Corona plague to 41% now.
A sharp increase in the purchase of apartments by young couples
The young couples purchased 11.7 thousand apartments (excluding price per occupant) with a sharp increase of 34% (compared to the corresponding quarter in 2020) in the purchase of new apartments. Since the beginning of the year, the young couples have purchased 36,000 apartments (new and second hand), the highest level compared to the corresponding periods since 2010.
In contrast to the jump in the purchase of apartments in the free market by young couples, there was a decrease in price per occupant apartments in all districts, the most notable of which was a decrease of 17.6% in Netanya and a decrease of 8% in Tiberias and Nazareth area. Of 5.5%.
The volume of dwellings purchased by housing developers during the quarter was 11.9 thousand dwellings, an increase of 10% compared to the corresponding quarter in 2020 and a decrease of 8% compared to the previous quarter. However, the segment that led the increase in transactions also in the current quarter was that of investors who purchased 7,600 apartments in this quarter – a jump of 73% compared to the corresponding quarter in 2020. This volume is the highest recorded by investors since the second quarter of 2015.
An all-time record in November
November 2021 occupied all time with the volume of purchases of his apartments, in this month 18.2 thousand apartments were purchased in Israel. The figure is attributed by the Treasury to the entry into force of the purchase tax increase on November 28, which encouraged many investors to hurry to close deals.
Compared to November 2020, this is a jump of 62% and compared to the previous month, an increase of 27%. Most of the transactions are in the free market, and only about 1,200 apartments were purchased at a price per occupant. Investors’ purchases accounted for an unusual share of over a third (37%) of all purchases, they purchased 6,700 apartments – an increase of 200% compared to November 2020, and an increase of 41% compared to the previous month.
Investors ‘purchases stood out in the cities: Tel Aviv, Haifa, Beer Sheva, and Bat Yam. On the other hand, investor sales were at the highest level of 3,900 apartments in the last decade, an increase of 88% compared to November 2020. Contractors’ sales also reflected a new record of at least 20 years. The sale of the apartments by them jumped to 6,700 apartments, a jump of 65% compared to November 2020. A jump in the sales of contractors was recorded in the Beer Sheva area (329%) which recorded the highest number of apartments sold in a particular locality (811 apartments)