It is supposed to be the flagship project of the Housing and Construction Ministry, one that will provide apartments at an affordable price for young couples, but, in the current housing market, young people understood a long time ago that the target audience for the project is primarily well established young people employed in the high-tech sector or those with wealthy parents.
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We recently received a painful reminder of this when a report issued by the Finance Ministry's chief economist revealed that the average household wage of apartment purchasers in the buyer fixed price project in Ramat Gan (Tel Hashomer) was a staggering NIS 38,000.
Furthermore, the report revealed that over half of those who purchased apartments in the project were employed in the high-tech sector.
We should note here that the project is in a high-demand area in the Dan region and therefore prices for apartments there are higher than for apartments in buyer fixed price projects in the periphery.
Meanwhile, the chief economist's report also revealed that the sales of new apartments by contractors in various areas of the country we're in decline. According to the Treasury's figures, a geographic assessment found that most regions saw a decline in the sale of new apartments compared with March last year, including a sharp 44% decline in the Tel Aviv area and declines of between 13 to 16% in the central region as a whole, Jerusalem, and Haifa.
On the other hand, there was a sharp increase of 46% in the south, which was influenced among other things by a "presale" of a large project by Gindi Holdings in Kiryat Malachi. The sales campaign for the Kiryat Malachi project placed the town second in apartment purchases by investors in March immediately after Tel Aviv. We should note here that Kiryat Malachi's usual ranking in the investor purchases list is around 60.
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The total number of apartments purchased for investment in Kiryat Malachi in March was 164, compared to five apartments only purchased by investors in March last year.
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