The Ministry of Finance, Ministry of Construction and Housing, and Israel Land Authority announced Wednesday the successful conclusion of 4 buyers price tenders. Last week, a contract was awarded for the building of 21 housing units in Tirat Carmel; the three others in Karmiel, Yeruham, and Migdal HeEmek were awarded on Monday.
But unlike the Tirat Carmel and Migdal HaEmek tenders, the state did not receive bids for some of the lots in Yeruham and Karmiel.
Of the 538 apartments offered on six lots in Karmiel, developers were only awarded 414 homes on five properties, with a 124-unit lot failing to garner any offers. In Yeruham, the state offered three lots with 196 units, but two were left “on the shelf” and only one for 48 apartments was awarded.
In total, of the 873 apartments in the tenders issued for the four cities, only 601 discounted homes are slated for construction.
In Migdal HaEmek, Taufik Darawshe was awarded the two properties in the 118-unit tender for NIS 5,299 per square meter in one lot and NIS 5,399 per square meter in the second. The bids were on average 5% lower than the maximum price set by the state. Based on the tenders awarded, an 80 square meter apartment with parking and storage will sell for NIS 545,500 (after the NIS 60,000 grants provided eligible buyers) and a 100 square meter apartment will cost NIS 669,500 after the deduction.
In Karmiel, three companies were awarded lots Carmel Slopes, Turag, and BST Construction, with the former pair receiving two properties each. The results of the tender showed a range of discounts from the maximum price set by the state, from a mere 0.6% in one lot to 6.8% in another.
However, most of the lots in Karmiel were awarded with only a miniscule discount from the maximum price. According to the results of the tender, an 80-square-meter buyers price apartment in the city will sell for an average price of NIS 747,000 while a 100-square-meter unit will cost NIS 916,000 (including VAT, balcony, parking, and storage space).
In Yeruham, where two lots received zero bids, Shatiron Investments was awarded the rights to construct 48 homes. The maximum price set by the state was NIS 6,650 per square meter, and the winning bid was NIS 5,955 per square meter a significant discount of 10.4%. A 110-square-meter apartment will cost NIS 844,000 including VAT after the NIS 60,000 grant.
In Tirat Carmel, A. Levy Investments was awarded the tender for its bid of NIS 5,450 per square meter a nearly 20% discount over the maximum price of NIS 6,806 per square meter presented in the tender. A. Levy’s price offers significant savings, noteworthy given the trend in recent buyers price tenders of minimal discounts.
Despite the good news for prospective homeowners, the end of the tender process is only the beginning of the road for the future homes. After being awarded the grant, the developer must still proceed through the bureaucratic steps and receive the relevant permissions and permits from the local authorities.
Therefore, the tender results will not provide the homes to the prospective buyers for at least two years. Like in previous tenders, registration for eligible buyers has yet to open and the lottery for the right to purchase the homes will be held by the Ministry of Construction and Housing and the Ministry of Finance in the coming months.
So far, registration has not opened for any buyers price apartments, despite tenders being awarded for the construction of thousands of apartments throughout the country.
Published by Globes [online], Israel business news - www.globes-online.com - on February 11, 2016
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